The Bank of Namibia (BoN) has kicked off a tentative 16-month journey to implement the Instant Payment Programme (IPP).
Marsorry Ickua, Officer in Charge at BoN says this structured plan covers programme governance, stakeholder engagement and the build and deployment phases.
“The ultimate goal is to launch the Instant Payment Solution swiftly, transforming Namibia’s financial landscape and promoting economic growth and prosperity,” he says at the launch of the industry kick-off for the IPP.
Ickua noted that the IPP is designed to be accessible on any device, including non-smartphones, ensuring that everyone from vendors and taxi drivers to pensioners and small business owners can use it effortlessly.
The IPP has garnered support from key stakeholders, Namclear, the Authorised Payment System Operator, will collaborate with the Special Purpose Vehicle (SPV) to ensure the IPP’s long-term operation.
The National Payments Corporation of India International has been selected to develop the IPP, leveraging its international success to deliver cost-effective and secure payment services.
The Payment Association of Namibia (PAN) is mandated to foster collaboration among its members, promoting the interests of the Namibian National Payments System.
Additionally, PwC has been appointed to manage the IPP transformation programme, drawing on its extensive experience in overseeing similar initiatives.
The project further aims to fulfil accessibility and affordability for underserved populations, achieving full interoperability of payment instruments by 2025, modernising the financial sector, and elevating cross-border payment efficiencies.
“The IPP promises several core benefits, such as financial inclusion targeting the informal economy and rural sectors thus ensuring access to financial services for all, while addressing challenges associated with high fees and charges,” he added.
He added that IPP also aims at modernising the Namibian financial system to support modern, efficient payment solutions, and increase economic activity through enhanced money velocity
Additionally, the IPP is in full alignment with National Strategies such as the National Development Plan, and the 2025 National Payment System Vision and Strategy.
The new system, according to BoN, promises to eliminate the need for costly travel and intermediaries typically faced by these communities when accessing financial services and by enabling secure and instant transactions, the Instant Payment Solution empowers rural populations and fosters greater financial inclusion.
“In line with its Strategic Plan, the Bank of Namibia remains committed to driving digital and financial inclusion across all sectors of Namibian society,” Bank of Namibia Governor Johannes !Gawaxab stated during his address to stakeholders at the 5th edition of the Cirrus Investor Conference at Swakopmund.
The Central Bank initiated a tender last year to engage reputable companies to design and operate the system over five years.
