Payment systems provide channels through which funds are transferred among financial institutions to discharge the payment obligations arising in the financial markets and across the wider economy. As such, they are a vital part of the economic and financial infrastructure and their efficient functioning contributes to overall economic performance. Payment systems by their very nature and the central role they play in the economy may also involve significant exposures and risks for participants and provide a channel for shocks to be transmitted across the financial system. They are the channels through which monetary policy is implemented and are required for credit extension on a collateralized basis. If payment and settlement systems, which facilitate the exchange of money for goods, services and financial assets, are viewed as inefficient, unreliable or unsafe, this would erode public confidence in their use. For this reason, as the public institutions responsible for preserving public trust in the national currencies, and in line with their mandate for financial and monetary stability, central banks exercise a special form of supervision of payment systems called “oversight”, the aim of which is to ensure that national payment systems operate safely and efficiently.
The National Payment System Vision is to complement the BoSS Vision through:
Enablement of optimal financial inclusion in South Sudan.
Creation of an interoperable National Payment System through application of First Principles Thinking and leapfrogging of payment technology.
Lowering of the cost of account to account and merchant payments.
Deployment of the latest technology to provide access to finance.
Enabling MSMEs to become digital payment enabled at the lowest possible cost.
Context of the NPS
The National Payments System (NPS)
The national payments system (NPS) comprises the financial market infrastructures as well as retail payment systems, instruments and payment service providers (PSPs). The term financial market infrastructure (FMI) refers to systemically important payment systems (SIPS), central securities depositories (CSDs), securities settlement systems (SSSs), central counterparties (CCPs), and trade repositories (TRs). When they operate efficiently, FMIs contribute to financial and overall economic stability and development. However, they concentrate risk and can be sources of financial shocks that can be transmitted across domestic and international markets.
Networks and platforms for the delivery of retail payments play an important role today in supporting financial access, especially in developing countries. Indeed, modern retail payment technologies are already being used in South Sudan to integrate underserved and non-served segments of the population into the formal financial sector and are central to the achievement of the authorities’ financial inclusion goals.
Embryonic South Sudan National Financial Inclusion Strategy.
The core objective set forth in a National Financial Inclusion Strategy (NIFS) is the development of a strategy and implementation plan for a country to achieve an inclusive financial system in which every adult has access to and is able to make full use of a range of adequate, quality and affordable financial services. These core objectives are also fundamental objectives of the current National Payment system-project terms of reference to develop a comprehensive National Payment Systems Vision and Strategic Framework that is forward looking with clear road map for transitioning to use digital technology to enhance financial inclusion.