BRIDGETOWN, Barbados – The Barbados Central Bank (CBB) has announced plans to introduce a new payment system that it says will create a more inclusive financial ecosystem, eliminating barriers between banks, credit unions, and other financial institutions to allow seamless real-time transfers.
Participants at the Central Bank of Barbados 45th Annual Review Seminar.Central Bank Governor, Dr Kevin Greenidge, said that the Instant Payments System (IPS), will be launched in March next year and promises faster, cheaper and more secure transactions.
“This is perhaps one of the most revolutionizing things that we’ve done since establishing the Central Bank,” Greenidge said during a panel discussion at the Bank’s 45th Annual Review Seminar.
The seminar, which runs until Saturday, is being held under the theme “From Recovery to Resilience: Ensuring Macroeconomic Stability Amid Emerging Risk,” and has brought together officials the Eastern Caribbean Central Bank (ECCB), Suriname, Aruba, the Bahamas, Trinidad and Tobago, Belize, as well as the International Monetary Fund and the World Bank.
Under the existing system, transferring money between different banks or credit unions can take hours or even days, with some institutions charging fees for instant transfers.
“We have what we think is a lack of interoperability. In layman’s terms, the systems don’t speak to each other very well. There’s a lot of time and cost in transactions and transfers,” Greenidge told the audience.
The CBB said that the IPS will change that by allowing real-time transactions across all participating financial service providers, including commercial banks, credit unions, and approved fintech companies.
As a result, customers will experience no more waiting for payments to clear transfers between accounts at different institutions, lower transaction costs and more payment options, with customers being able to send and receive money directly from mobile devices, even without cash or cards.
Deputy Governor Michelle Doyle, who is leading the IPS project. Said customers may now do their shopping without having a credit card or cash “but if you have your phone, you can make a payment from your mobile device.
“That means greater commerce,” he added.
One of the key goals of the IPS is to break down barriers for smaller financial players, including credit unions and fintech startups. Currently, some fintech firms approved by the Central Bank struggle to integrate with larger banks due to technical limitations.
The first phase of the IPS rollout will include major banks, the three largest credit unions, the Barbados Stock Exchange, and the Accountant General’s Department. Participation will become mandatory for all licensed financial institutions.
“Technology is moving so fast. As regulators, we have to facilitate those movements and be ahead of the curve,” the Central Bank Governor said.
Earlier, Greendige said the Caribbean must move beyond post-COVID recovery and focus squarely on building resilience amid new economic and environmental threats.
“We now face the critical task of building resilience against tomorrow’s uncertainty. Recovery alone is not enough. True resilience requires that we anticipate future shocks, that we transform our vulnerabilities into strengths, and that we build institutions and systems capable of thriving and accelerating change.”
Greenidge said that while the Caribbean has shown signs of economic recovery since late 2022, it must now confront growing risks, including volatile energy and commodity prices, climate change, cyber threats and rising global uncertainty.
He said to navigate these challenges, there is need for agile fiscal policies, stronger debt management, inclusive digital financial ecosystems, and climate-resilient growth strategies that protect vulnerable populations.
“It requires a reimagining of the role that central banks in our region play – going beyond traditional monetary policy. Some of that will come out today, including our role with respect to green finance, our payment systems…. These are areas we must address.”
Greenidge also emphasized the need for deeper regional capital markets and stronger regulatory systems to foster innovation while maintaining financial stability.
