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Michael McGrath, Ireland’s finance minister, is seeking input on a future National Payments Strategy (NPS), including topics such as choice and resilience.
The Irish government has taken further steps towards launching its new NPS, which is due to be published in 2024.
“Ensuring Ireland has an accessible and innovative payment system is vital for our society and economy,” said McGrath, a member of the centre-right Fianna Fáil party.
Stakeholders have until February 14 to submit their responses to the government consultation, which will make up a key part of the future NPS — the first initiative to be published by the Irish government since the 2013 National Payment Plan.
“All citizens should be able to participate fully in all aspects of modern life using digital or cash methods of payment,” said McGrath. “While technology can enable vulnerable groups to partake in society in new ways, it should not exclude them. I want to ensure choice is at the centre of our future payments strategy.”
As the trend towards digitalisation continues, McGrath said that it is the government’s role to ensure that people are not left behind. “We must avoid the risk of financial exclusion.”
McGrath continued that the government has to recognise the important role that cash continues to play in our society and economy, adding that “this is a role I am determined to protect”.
“The public consultation exercise affords interested groups and members of the public to have their say on the future of our payments system, and I would like to hear as many voices as possible,” he said.
McGrath’s work echoes that of other European countries, including the UK and Sweden.
For example, the UK has recently turned its attention to payment choice with the Future of Payments Review, which recommended the country introduce a National Payment Strategy.
Meanwhile, Sweden has focused on issues such as financial inclusion and contingency measures.
What will the NPS feature?
Once published, the strategy will set out a roadmap for the future evolution of the entire payments system, taking account of developments in digital payments, cash usage and how future changes should be made to the legislative criteria relating to access to cash.
The government says that the NPS will support the evolution of the overall payment system, maintaining ongoing access to a choice of payment methods in line with options available to other European peers.
The strategy will also look at what can be done to enhance choice of non-card payment options within digital payments, saying that the Irish payment system must provide citizens with equal access to a range of payment options that meet their needs.
“Payment services should be accessible on a fair, open and transparent basis, including cash for those who rely on it,” the consultation says. “Payment services are a critical part of modern life that provide a vital infrastructure to how we live and work.”
Another key element will be to examine and analyse fraud, the consultation says, adding that this has become a critical issue since the last government payments plan.
“While much of this area is governed by EU legislation, it is important that the NPS examines and analyses payment fraud to see if further domestic measures can be identified to prevent fraud,” the consultation says.
Within the payment roadmap, the NPS will also look at crypto-assets, instant payments, open banking and what new data needs to be collected on the payments landscape.
Questions in consultation process
Among the questions that feature in the consultation are whether there is a reasonable level of choice in the payment methods currently available to consumers in Ireland and, if not, are there any initiatives that could be undertaken in addition to the legislation currently in train at an EU and domestic level, to better promote access and choice.
The government asked how it can help protect vulnerable groups via the consultation, as well as looking for answers on fraud, saying that beyond upcoming legislative files such as the EU’s Payment Services Regulation (PSR), it wants to understand better how to address unauthorised payment fraud domestically.
Additionally, the consultation also asks whether cross-industry engagement including actors outside the banking and payments sector is needed to adequately address the issue of authorised payment fraud, which echoes amendments laid down by members of the European Parliament (MEPs) to the PSR.
Although the consultation does not directly identify social media or telecommunications firms, these would likely be considered candidates for such engagement.
