The National Payment System Framework and Strategy

The SA National Payment System Framework and Strategy: Vision 2015.

Executive summary.

In April 2006 a new framework and strategy document (Vision 2010) was published. Since the publication of this document, major strategic objectives envisaged in the publication have been implemented and achieved. Owing to the dynamic nature of the payment system, and national and international demands, new challenges are facing the NPS and a refinement of the strategic direction is required. The purpose of this framework is to provide high-level updated strategic direction for the payment system up to 2015. New objectives and strategies have been developed, and some of the Vision 2010 objectives and strategies have been reconsidered, resulting in a refocus and/or redefinition for Vision 2015.

Major challenges up to 2015 include the following:

• To continue to evaluate opportunities for further access to the NPS and improve the participation of non-bank stakeholders in the clearing system and/or in the formal payment management structures. The recent financial crisis has re-emphasised the importance of sound risk management policies and practices in the maintenance of a safe and efficient payment system.
• To enhance the oversight of banks and non-banks. As non-bank stakeholders are playing a larger role in the payment system, effective payment system risk management policies need to be considered.
• To enhance communication among stakeholders regarding NPS matters. Communication augments payment system stakeholders’ understanding of the multifaceted nature of the payment system, which at times appears to be complex and misunderstood.
• To participate in international workgroups and forums. Continued participation in international forums ensures that South Africa stays abreast of international developments spanning the many dimensions of the payment system.
• To enhance payment system human resources capacity in the broader NPS. An intensified focus on human resources capacity-building initiatives creates depth of knowledge and develops much-needed skills in the industry.
• To ensure high-level operational effectiveness of the payment system infrastructure. Operational effectiveness ensures the circulation of funds in the financial system and efficient liquidity management by participants. Failure of the infrastructure components of the payment system could result in substantial operational risk.
• To facilitate regional payment system infrastructure integration that meets the needs of the Southern African Development Community (SADC) region. The emphasis will be on commencing the process towards an integrated infrastructure.
• To formalise and implement an interchange determination process in South Africa that is fair, transparent and sustainable. This process should include all payment streams.

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