Migration from Paper to Electronic Payments
The objective and benefits of migrating to electronic payments
Migrating from paper-based payments to electronic payments would improve the overall efficiency of the payment system, and provide meaningful cost savings and efficiency to the entire economy. By driving the displacement of cash and cheques through more intensive use of electronic payments, resources involved in manual processing can be redeployed and cost related to cash and cheque handling can be considerably reduced. Electronic payment, which is a more expedient and efficient means of payment, provide the opportunity to improve productivity levels and lower the cost of doing business. Studies have shown that shifting from paper based to a more electronic based payment system can generate an annual savings up to 1% of GDP. Moreover, electronic payments can also enhance financial inclusion by extending financial services to the unbanked communities. In so doing, such communities would be brought into the formal financial system and into the economic mainstream. This would enable them to enjoy lower cost of financial services and better means of savings.
The shift to electronic payments is an area in which the quantum leap forward can be made and is essential to the quest to achieve higher economic growth and improve the competitiveness of our economy.