Financial Crime World

Ireland’s Payments Ecosystem Needs a System-Wide Approach to Thrive

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A growing number of participants are driving innovation in Ireland’s payments ecosystem, but harnessing the benefits while managing risks requires a coordinated effort from both industry and government.

Coordinated Action Required

The National Payments Strategy (NPS) must prioritize initiatives that enable account-to-account payment solutions, closing the “access gap” between Ireland and Europe. The NPS also presents an opportunity to ensure the domestic retail payments ecosystem is prepared for emerging technologies.

Priorities for the NPS

  • Enable account-to-account payment solutions
  • Close the access gap with Europe
  • Prepare the domestic retail payments ecosystem for emerging technologies

Safeguarding Cash as a Means of Payment

Cash remains a vital part of the payments ecosystem, and the Central Bank welcomes proposed legislation on access to cash. However, the bank recognizes that the use of cash is declining and public money needs to evolve to meet society’s changing preferences.

Challenges with Cash Payments

  • Declining use of cash
  • Need for public money to evolve with changing societal preferences

Security and Resilience of Payments

The National Payments Strategy offers an opportunity to strengthen security and resilience by implementing additional fraud prevention measures, safeguarding individual institutions, and strengthening system-wide contingency planning.

Measures to Enhance Security and Resilience

  • Implement additional fraud prevention measures
  • Safeguard individual institutions
  • Strengthen system-wide contingency planning

Enhancing Data and Analytical Insights

Evidence-based policy making is critical in driving informed decisions. The Central Bank urges the need for more data and analytical insights to understand the direction of travel for Ireland’s payments ecosystem.

Importance of Data and Analytics

  • Critical for evidence-based policy making
  • Needed to understand the direction of travel for Ireland’s payments ecosystem

Conclusion

Ireland’s payments landscape is undergoing significant change, with both technological and business model innovation shaping the sector. The National Payments Strategy offers an opportunity to develop a coherent, system-wide approach to the future evolution of payments within a European context. A healthy and competitive economy relies on an innovative, inclusive, and resilient payments ecosystem.

References

  • [1] Central Bank of Ireland Submission to Department of Finance’s Consultation on National Payments Strategy