Barbados’ three largest credit unions have thrown their support behind a new mandatory instant payments system (IPS), set to launch next March, describing it as a transformative step towards faster, more accessible financial services for all Barbadians.
The Central Bank announced on Thursday that it has mandated all of the country’s commercial banks, credit unions, Barbados Stock Exchange, and the Accountant General’s Office to operate on the system.
“This mandatory participation requirement applies to all existing participants in the interbank real-time clearing and settlement system (RTGS) and derives from the fundamental necessity to base the IPS platform on a fully interoperable model that can facilitate instantaneous financial transactions to all end-users of payment services in Barbados,” the bank said.
“The IPS platform represents a major component of the Barbados Payments System Modernisation Project, which aims to enhance financial accessibility by enabling real-time transactions for all Barbadians, regardless of their banking provider.”
The Central Bank explained that the system will also, at a later stage, allow access to other non-bank financial entities such as money transfer service providers, mobile money operators, fintechs, and other payment service providers that the bank licenses.
The island’s largest credit union, the Barbados Public Workers’ Co-operative Credit Union Limited (BPWCCUL), with a membership of 119 000, said it supported the new IPS.
“I think it is a good move in terms of moving to one single payment system nationally, it really makes a lot easier for consumers, instead of having to deal with different entities,” Group Chief Executive Officer Glyne Harrison, told Barbados TODAY on Thursday.
“It also allows for the financial institutions themselves, to now be able to develop a common standard and be able to roll out things even faster, since the Central Bank is the administrator of the sole facility, rather than individual entities now being responsible… and due to the fact that there is now a payments council… it will make it better for the average Barbadian. So, there will be good things to look out for.”
The second largest credit union – the City of Bridgetown Co-operative Credit Union (COB), with a membership of 71 000 – also welcomed the move.
“Government has taken over, consistent with what is happening all over the world, where payments are seen as a sovereign asset, and therefore, should be controlled by the government of the island. This is now seen as a public good,” Chief Executive Officer Steve Belle, told Barbados TODAY.
“In terms of the cost — and you want to get all of the small institutions, like all of the small credit unions and other payment providers, that wouldn’t be able to afford the existing IPS on the system — the Central Bank has taken it over, so it becomes more affordable,” Belle added.
“And essentially, it is going to be good for Barbados in the sense that now you are not having transactions going over the international payment rail like Mastercard and Visa, as what happens now with cards, and therefore the costs are going to be a lot cheaper than what currently exists.”
The 35 000-strong Affinity Plus Credit Union Limited (APCUL), formerly the Barbados Workers Union Credit Union, joined its counterparts in giving its stamp of approval.
“We think it is a progressive development in terms of having one seamless and consistent payment system that can be used across Barbados. We think it holds a lot of opportunities for our members in terms of being able to facilitate the payments for their small businesses, to facilitate easier transfer and receipt of funds from various sources,” Marketing Manager Valerie Hope, told Barbados TODAY.
“We are really excited about what’s to come, and happy to be onboard as one of the largest credit unions in Barbados,” Hope asserted.
The Central Bank said that in recent years, payment systems have become an essential focus of public policy worldwide, and central banks have been given responsibility in this area because of their role in maintaining the economy’s financial stability.
“Central banks, in turn, have increasingly come to recognise the importance of instant payment systems as a driver and tool for economic growth and increased financial inclusion,” it stressed.
The bank explained that its main objective is to enable and accelerate digital retail payments across various digital channels to achieve deeper financial inclusion cost-effectively and efficiently.
This objective, the financial regulator continued, “will be achieved by establishing the IPS platform which enables participating institutions to introduce various payment services on top of, and around this infrastructure”.
The Central Bank has already selected Montran Corporation as the vendor for the new national Instant Payment System. It stated that it selected the globally recognised payment systems provider following a competitive procurement process that began in February 2025 with the issuance of a request for proposal for the design, supply, installation, and support of the IPS.
The banking regulator said that, apart from the six commercial banks and three credit unions, the system will also count the Barbados Stock Exchange (BSE) and the Treasury Department as participants.
In parallel to the technical implementation of the system, the bank is to launch a comprehensive public education campaign to promote awareness and adoption of instant payments.
The bank is also in the process of modifying the legal and regulatory payments framework to accept new forms of payments as well as to enhance consumer protection, fraud control, and data privacy aspects of current legislation. (EJ)
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