How to Implement
Guidance
Understand cost components in detail.
The Scheme should develop a detailed understanding of the end-to-end cost to deliver a basic credit push transfer. This cost is the basis of a transaction fee. Different fees can be established for different use cases, but a higher fee should be justifiable by the additional effort involved (e.g., a cost to access a data base, screening, etc.) and be justifiable to DFSPs.
Set fees and recover costs with a longer-term horizon.
Launching a new payment system is an expensive and complex undertaking, making it unrealistic (and unwise) to attempt to recover the investment quickly — especially in the initial years before adoption and usage are widespread. The high fees that would be required to quickly recover the investment will make the service unattractive to DFSPs and to end users. The Scheme should clearly articulate its time frame for recovering investment and operating costs.
Be transparent about Scheme fees for DFSPs.
All fees should be fully transparent to DFSPs so that they can reasonably plan their expected costs and set fees for end users. The minimum time period at which a Scheme fee may be adjusted should be included in the rules.
Support low end user fees through low DFSP fees.
By adopting a not-for-loss business model and working to provide Low Fees for DFSPs, the Scheme supports an environment that enables DFSPs to offer affordable fees to end users.
Define Scheme role in setting end user fees.
National regulation determines what role, if any, the payment Scheme may have in setting fees to end users. The role and level of influence of payment Schemes varies significantly by country and sometimes by the type of payment being offered. In all cases, the Scheme should be clear in the rules on the type of role it seeks to play in determining end user fees (e.g., setting fees, providing guidance).
Keep cross-border fees for DFSPs very low.
The Scheme should take efforts to keep the DFSP fee low so fees to end users can be affordable for this important payment need. The Scheme should make foreign exchange options available, allowing DFSPs to make their own competitive currency conversions or take advantage of a competitive FX marketplace.
Why It Matters
Low fees for DFSPs encourages financial services providers to participate in the Inclusive IPS and to use the Scheme for as many types of transactions as possible while allowing them to provide affordable payments to their end users.
Seeing More Clearly
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Women’s Inclusion
Women benefit from low Scheme fees for DFSPs, which makes it more affordable for all types of providers to join the Scheme, thus benefiting women who tend to rely on non-bank, often smaller providers, and ensures that DFSPs have fewer fees that they can pass on to resource-constrained women end users.
Cross-Border
Cross-border payments have historically been complicated arrangements and have remained expensive for DFSPs and end users, in part due to the expectations of lucrative margins for commercial providers. When the Scheme offers cross-border payments to DFSPs, it can deliver scale (keeping fees low to DFSPs) and foster competition support (keeping fees low to end users). Sometimes regulation is required to achieve these goals in the cross-border context.
Tools
Design Guides
Dig into how to implement each of the practices.
Generic payments scheme rulebook categories and example table of contents
A generic scheme rules that IIPS operators can use to build their own rulebook
Review Generic payments scheme rulebook categories and example table of contentsPractitioner’s Guide to Payments Scheme Governance and Financial Inclusion
A practical guide to payment scheme governance, outlining key considerations, structure types, and best practices to ensure financial inclusion within digital financial systems, with actionable…
Review Practitioner’s Guide to Payments Scheme Governance and Financial InclusionRelated Resources
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