National Payment Platform coming soon

Friday, 15 July 2016 01:21 - - {{hitsCtrl.values.hits}}

By Uditha Jayasinghe

The much needed National Payment Platform (NPP) will soon be a reality empowering efficiency in the country for Government, businesses and the public at large.

The breakthrough follows the Cabinet this week approving the NPP proposal submitted by Finance Minister Ravi Karunanayake on the recommendation of the Inter Ministerial Committee chaired by Telecommunication and Digital Infrastructure Harin Fernando.

The Information and Communication Technology Agency (ICTA) and the Central Bank will be spearheading the ground breaking initiative.

In essence the NPP will bring about digital commerce to facilitate governments, businesses and citizens to perform digital commerce with efficiency, ease and low cost. It will also enable the public to transfer funds from any of their bank accounts through mobile phone for the payment of goods and services using their National ID.

The NPP will bring in savings for the government by increasing efficiency thereby reducing cash movement and the cash float in the market. The NPP will also ensure Sri Lanka’s ranking in the global index of Ease of Doing Business improving considerably.

Private businesses will be able to make online payments, including to crucial Government institutions such as the Customs, Inland Revenue and Excise departments.

“The most convenient method used by public in obtaining goods and services, is the international credit card such as Visa, MasterCard, and American Express. However, Government institutions such as Sri Lanka Customs, Department of Inland Revenue, Department of Excise and others are less interested in using this method as the charges are increased according to the value of the transaction,” the Cabinet paper said.

An online- and mobile-based system rather than a credit card based system would be more acceptable to these Government institutions, the paper added.