The Committee on Payments and Market Infrastructures (CPMI) has issued the report Non-banks in retail payments to examine the role of non-banks in retail payment services and analyse the implications of the growing importance of these entities in retail payments.
The report is based on several fact-finding exercises that were conducted to support the analysis, revealing a significant presence of non-banks in all stages of the payment process and across different payment instruments. The report analyses the factors influencing the growing importance of non-banks, the main implications for both the efficiency of and risks in retail payment systems (including their possible influence on financial inclusion) and the diverse regulatory approaches for the different types of non-bank in various jurisdictions.
The report concludes with an analysis of the main issues and implications for central banks and other authorities. The main issues identified relate to the potential impact of non-banks on operational risk, level playing field issues, consumer protection aspects and the risks that might emerge if outsourcing of payment services is concentrated in a single or a few non-banks. Central banks are invited to consider the challenges identified, including risk and level playing field issues, and take action as appropriate in their jurisdictions.