The Bank of Namibia (BoN) last week launched the Instant Payment Project with the intent of broadening financial inclusion through essential and affordable financial services to all with the focus particularly on the rural and informal settlements as they face logistical and financial challenges in accessing conventional banking services.
The initiative came to be after the bank explored solutions as part of the Bank's 2022 to 2024 Strategic Plan that could be adapted to the Namibian context to foster the uptake of affordable, fast, and efficient payment services with the targeted official launch to be the year 2025.
The platform can be accessed on any device whether it is a smart-phone or non smart-phone device allowing everyone from vendors and taxi drivers to pensioners and small business owners to use it therefore, beneficial to those who may not have access to sophisticated banking services or the financial means to handle traditional banking fees.
The BoN Governor Johannes !Gawaxab during the launch emphasized on the objectives this project aims to fulfil in alignment with the Bank's Strategic Plan and National Payment System Vision and Strategy 2025.
He further highlighted that the deliberate choice of a central bank-led approach aims to minimize infrastructure costs for financial institutions, ensuring the instant payment solution remains sustainable and affordable for the end user.
In addition, the Governor also announced approval from the Minister of Finance and Public Enterprises of the establishment of an Independent Special Purpose Vehicle tasked with implementing the Instant Payment Project in partnership with Namclear.
Maureen Hinda-Mbuende, the Deputy Minister of Finance and Public Enterprises, described this initiative as pivotal in promoting accessibility, literacy, and consumer protection and pointed out that long-term sustainability involves constructing a system that is resilient, scalable, and capable of evolving with technological progress and changing of the market.
She further called upon government and agencies to actively utilize the system for both payments to be made and payments to be received
Similarly, all stakeholders including banks and nonbanking institutions were encouraged to integrate the instant payment solution into their products and services while ensuring accessibility, affordability, and safety.
