Payment system trends in developing countries

Abstract

This paper is Presented to a Seminar on "Payment Systems in Eastern and Southern Africa: Development and Perspectives", organized by the Bankers Association of the Common Market for Eastern and Southern Africa, in collaboration with the Commercial Bank of Ethiopia, 30 to 31 May 1996, Addis Ababa, Ethiopia. A payment system is a combination of the institutional set-up in which payment transactions are made; the various actors involved for the transactions to take place; and technological instruments used in the transfer of funds. The institutional set-up of a payment system often comprises of a central bank, commercial banks and non-bank financial intermediaries, postal services, and in advanced countries courier services. The actors in a payment system are usually individuals, firms (including banks and non-banks), governments, and non-governmental organizations. The instruments used to transfer resources between the various actors range from cash and cheque payments to electronic transfer of funds.