In a report published on 9 September 2014 by the CPMI, central bankers have examined the role of non-banks in retail payment services and have analysed the implications of the growing importance of these entities in retail payments.
The report reveals a significant presence of non-banks in all stages of the payment process and across different payment instruments, and analyses the factors influencing the growing importance of non-banks, the main implications for both the efficiency of and risks in retail payment systems (including their possible influence on financial inclusion) and the diverse regulatory approaches for the different types of non-bank in various jurisdictions.
What this means for you
The main issues identified in the report relate to the potential impact of non-banks on operational risks, level playing field issues, consumer protection aspects and the risks that might emerge if outsourcing of payment services is concentrated in a single or a few non-banks. Central banks are invited to consider the challenges identified and take action as appropriate in their jurisdictions.