Retail Payment Systems
In the OIC Member Countries
100
costs associated with actions such as abandoning previous practices and learning how to use
new ones. Both of these features apply to retailers and to their customers.
For members of the public who are used to traditional cash transactions for immediate
delivery of goods and services, any form of intermediation may seem alien. Those who have
made the transition to cheque systems will have come to understand the concepts of stored
value and the role of intermediaries. They will also have familiarity with concepts such as
payment for services that offer greater security than cash, delays in payment clearing, and
standardised accounts. From that familiarity it is conceptually a small jump to debit cards, but
perhaps a larger jump to credit cards, where the concepts of debt payments and interest rates
introduce both procedural and, for some, moral considerations. Those payment systems that
rely on digital technologies, and especially mobile phone or mobile internet technologies,
require a further leap both conceptually and for some, culturally. Here the challenge is mainly
the familiarity of such technologies, which is a trivial matter to those who grow up with mobile
phones and online information and entertainment, but can be a large gap to bridge for those
newly introduced to such practices. Some people are also concerned about the use of
information about their purchasing and selling activities, especially when so many other actors
beyond familiar banks and government agencies are involved. They may recognise that privacy
is compromised even if they are content with the level of security offered. The may feel
threatened by the introduction of players such as telecommunications network operators
(mobile and terrestrial), accounting services providers, transaction services, handset and
terminal equipment manufacturers, ‘trusted third party’ intermediaries providing security and
identity checks, etc.
For both the buying public and retailers, it is necessary to recognise the perceptions they will
have of the changes necessary to adapt to new forms of payment systems. Education and other
forms of awareness building are at the core of public acceptability. In some cases, such as with
the initial introduction of mobile payment systems, it has been the big commercial interests,
often mobile telephone network operators, who have taken on this responsibility. In other
cases it has been governments. This was most notably done in Bahrain, where considerable
government expenditure was allocated to providing customer services for months after the
initial launch of electronic banking services in 2009.
The key lesson from these experiences is that concerted effort must be made to achieve
successful transitions to new retail payment systems. Whether this is done by governments,
private bodies, or some combination of actors depends upon the foresight, willingness,
strategy and means of the key players. Extensive education is needed where special problems,