A well-structured governance model is crucial for designing inclusive digital payment systems. This guide explores best practices for transparent, useful, and affordable payment schemes.
Key governance principles:
- Equal Ownership: All direct participants of the scheme (banks and non-banks) are provided equal ownership opportunities in scheme governance as well as in scheme payment operations.
- Participant Engagement: Direct and indirect participants are provided formal and informal mechanisms to provide input on the direction of the scheme, including the scheme rules.
- Ensuring a Pro-Poor Posture: The scheme operates as a not-for-loss and the entity managing the scheme maintains a pro-poor posture where payments are considered a shared utility not a profit maximizing activity.
Three governance models:
- Central bank-led: Can support pro-poor posture, but may limit ownership opportunities
- Association-led: Encourages broad participation from banks and non-banks, but bank and non-bank equality can be at risk.
- Commercial-led: Can be profit-driven but must be structured for inclusivity.
The document outlines recommendations for each of the governance models. The guidance can help build strong governance ensuring interoperability, trust, and long-term economic sustainability of Inclusive Instant Payment Systems.