Seychelles to move towards digital payments |17 August 2018

Mr Hujair leading the workshop

The Central Bank of Seychelles (CBS) conducted a digital payments workshop at Eden Bleu hotel yesterday in a bid towards normalising the different modes of digital payments.

The workshop was organised with financial services company Visa Inc. as part of the Central Bank’s vision and strategy for the period of 2016-2020 to digitise the National Payments System.

Senior director of the Visa School for Public Policy Majeed Hujair facilitated the workshop which was attended by individuals from organisations and government departments whose roles are critical to the successful and effective payment system in the country.

Representatives from the Central Bank Seychelles (CBS), Ministry of Finance, Trade, Investment and Economic Planning, the Department of Information Communication Technology (DICT), Seychelles Revenue Commission (SRC) and Seychelles Investment Board (SIB) were among the stakeholders present.

Governor of the Central Bank of Seychelles (CBS) Caroline Abel thanked everyone in attendance for their willingness to work together towards digital financial services, for the betterment of the financial sector and the country.

“The financial services sector is the lifeblood of the economy. Various initiatives have been introduced by Seychelles, showcasing our interest in digital financial services including the introduction of internet banking platforms by commercial banks, Point of Sales (POS) systems in government agencies and the introduction of EMV (Europay, Mastercard and Visa) compliant debit cards,” she said.

Explaining the increasingly important role of digital technologies in society, she stated that digital financial services are imperative to financial inclusion in Seychelles.

“The Central Bank recognises digital payments as a priority, as the shift towards digital payments can bring about exciting opportunities and contribute immensely towards digitising the economy,” she added.

According to the World Bank, financial inclusion means individuals and businesses alike have access to affordable financial products and services that meet their needs in a sustainable and responsible way.

Head of Financial Inclusion and Market Conduct Division, James Jean, stated that the workshop is a starting point towards a digital payment system.

“The aim is to create awareness on the benefits of the different modes of digital payments, these digital payments help to improve financial inclusivity within a country. If more people are using digital services and payment systems, it helps to reduce the costs of managing money and cash which is a cost incurred by the Central Bank and other commercial banks. It costs to print cash, to destroy it as well and it must be stored, managed and guarded, all of which costs money,” Mr Hujair stated.

He highlighted that the workshop is important as it will not only educate the delegates on the benefits of digital payment systems but will also help identify what policies that need to be put in place towards a national system of digital payments.

In recent weeks, CBS has taken the initiative to visit businesses on Mahé, Praslin and La Digue to educate them on the benefits of using digital modes of payment in line with the CBS’ vision towards a society that uses less cash and uses more digital payments.

Mr Jean also added that the Central Bank has made it part of its mission to educate the general public with regards to security so they know how to use such services in the proper way and keep themselves protected against risks such as fraud.

He concluded by saying that the Central Bank is working on a legal framework to enhance the level of protection offered to consumers and stakeholders who make use of digital payments, since the use of such services are increasing significantly in Seychelles.  

“This will ensure that there is a mechanism to provide redress for consumers that are using such digital services,” he said.

It is important to note that the World Bank has committed to advance financial inclusion worldwide under the Universal Financial Access 2020 strategy.

Their approach centres on improving financial literacy, expanding access points and enabling legal and regulatory framework.