FAST payments are being hailed as a transformative force in the financial landscape, as articulated by Reserve Bank of Fiji Governor Ariff Ali during the recent Pacific Fast Payments Systems Workshop held in Nadi. Concluding on December 5, the three-day event brought together central bank governors, finance officials, and representatives from multilateral organizations to discuss pressing issues in payment systems.
Organized by the Pacific Islands Forum Secretariat, the Reserve Bank of Fiji, and the World Bank Group as part of the Pacific Strengthening Correspondent Banking Relationships Project, the workshop served as a platform for sharing insights on global fast payment trends. Topics covered included risk management, fraud prevention, burgeoning technologies, and cross-border payment capabilities.
With over 120 jurisdictions already utilizing fast payment systems, discussions centered around how Pacific nations could embrace similar reforms to keep up with international advancements. Governor Ali emphasized that fast payments represent not just a trend, but a vital strategy for enhancing financial inclusion and fostering economic connectivity. He highlighted Fiji’s recent initiatives, including significant upgrades to its real-time gross settlement (RTGS) system, instant funds transfer capabilities, mobile wallet integrations, and enhanced interoperability among banks and mobile payment platforms.
The demand for digital transactions in Fiji has surged, with internet banking volumes soaring tenfold since 2015. This year’s projections indicate mobile wallet transactions could reach 50 million, with a total value of around $3 billion. However, Ali pointed out that, despite this digital growth, cash remains influential in Fiji’s economy, as 62 percent of residents still prefer cash for everyday spending, which constitutes about 8 percent of the country’s GDP.
In his speech, World Bank North and South Pacific Director Stephen Ndegwa underscored the urgency of adopting fast payment systems. He warned that prolonged delays in modernization efforts could leave Pacific countries lagging behind globally. Citing successful implementations like Thailand’s PromptPay, which is projected to contribute 2 percent to GDP by 2026, and India’s UPI, which has realized savings of $67 billion over nine years, Ndegwa called for immediate action.
He highlighted the pivotal role of central banks in designing, implementing, and coordinating these systems while urging Pacific leaders to continue their collaboration. By doing so, they can harness productivity gains, reduce transaction costs, promote greater financial inclusion, and more tightly integrate their economies within the global financial framework.
Overall, the workshop fostered a positive outlook on the future of fast payments in the Pacific, emphasizing the need to embrace technology to drive economic growth and improve access to financial services for all.
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