Retail Payment Systems
In the OIC Member Countries
1
EXECUTIVE SUMMARY
This report describes and analyses recent developments in retail payment systems for the OIC
Member States. It presents an overview of the status of payment systems generally and a
conceptual frame for the analysis of retail payment systems based on up-to-date research. We
provide a description of retail payment systems in the OIC Member States generally and
present detailed analyses for eight case study countries. These countries are: Egypt, Indonesia,
Ivory Coast, Morocco, Nigeria, Pakistan, Turkey and the United Arab Emirates and were chosen
to offer a range of features including differences among socio-economic forms, governance
systems, infrastructure, financial services, geography and many specifics of their existing retail
payments practices.
This report contains data from the central banks and national statistical offices, from the Bank
for International Settlements, the World Bank, and many other official and industry sources.
Case studies on retail payment systems as well as best practices from the industry have also
been included in the report, where they help to support or deepen insight from the study. For
example, the case of Bank Islam Malaysia’s BI Card is presented as an example of Islamic
banking principles interpreted for modern payment systems.
We can define retail payment systems to include all means of exchanging value between
retailers and customers. In its most broad conception this would not exclude barter systems,
loyalty cards that accrue value, credit schemes of all kinds as well as cash and credit cards.
However, we have focused on those forms of retail payment systems that have so evidently
extended or challenged legacy systems. These include especially point-of-sale [PoS] systems,
mobile money systems, debit and stored value schemes, etc. Many of these are variously
packaged into a variety of forms of e-wallet arrangements. Some work best, or only, over e-
commerce systems. Others are intended primarily for large store networks and others for
small shops.
Some payment systems seem to be the preserve of the wealthy, either by design or accident,
while others are intended for the poor—sometimes subsidised, as with certain microfinance
schemes that incorporate payment systems along with lending.
Highlights from the Report
1. There is a very wide range of systems currently employed, with no consensus as to
standardisation despite efforts by the International Organisation for Standardisation [ISO]
and the World Bank to establish best practices. The Bank for International Settlements