January 26, 2017
Suva, Fiji – The Fijian Government has become the latest government to join a UN alliance of governments and organisations committed to accelerating the transition from cash to digital payments in order to reduce poverty and drive inclusive growth.
Fiji’s membership falls under the Better than Cash Alliance (BTCA). The BTCA partners with governments, companies, and international organizations that are the key drivers behind the transition to make digital payments widely available.
Fijian Attorney-General and Minister for Economy Aiyaz Sayed-Khaiyum endorsed Fiji’s membership under the BTCA and reiterated Fiji’s commitment to inclusive financial policies.
“Fiji is developing its financial sector to give as many Fijians as possible access to efficient and reliable financial services. We have already put in place a number of policies and initiatives that have harnessed the potential of digital innovation to increase public participation in our formal financial sector. And we are keen to work with our international partners to help meet our target of channelling 85 per cent of government payments through digital platforms by 2020,” he said.
The endorsement of the alliance was initiated by the United Nations Capital Development Fund (UNCDF) pacific-based flagship programme, the Pacific Financial Inclusion Programme (PFIP).
PFIP Manager Mark Flaming said “the programme recognises that the Fijian Government is working toward creating an enabling environment for the digitisation of government payments. PFIP is eager to support the Fijian Government in the implementation of the alliance.”
In becoming a member, Fiji endorses the guiding principles of the alliance including:
Over the past decade, the Fijian Government has made a strategic shift from cash and other paper-based mediums of exchanges to electronic payment forms. Today 70 percent of all government payments are made through electronic platforms.
In 2011, the Fijian Government, in collaboration with PFIP, introduced a ground-breaking platform for social welfare payments, marking a shift from voucher-based payments to electronic transfer to a bank account, benefiting approximately 33,000 recipients. Funds have since reached welfare recipients in a more timely and cost-effective manner and the new payment system has also provided recipients with a secure place to save. This was the first Government-to-Person (G2P) electronic payment initiative in the Pacific.
All pension payments to retirees from Fiji’s Superannuation Fund, the Fiji National Provident Fund are also made through banking and electronic channels and, more recently, lease payments through the iTaukei Lands Trust Board.
After the devastating Tropical Cyclone Winston in February 2016 (which caused estimated damage of $1.5 billion), the Fijian Government used e-cards pre-loaded with approved amounts to assist families who had lost their homes. Under this Help for Homes Initiative, recipients were able to purchase building materials with the e-cards from selected hardware stores.
Last year Fiji completed its first medium term financial inclusion strategy and is embarking on the second “National Financial Inclusion Strategic Plan 2016 – 2020″ with a target of increasing access to formal financial services to at least 85 percent of the adult population by 2020.
One of the goals of the strategy is to elevate digital financial services. The strategy aims to increase the percentage of adults using digital payments from eight to 15 percent over the next five years.
These developments have the potential to not only provide substantial benefit to the Fijian Government but also promote financial inclusion by providing Fijians with an entry point into the formal financial sector, enhancing the welfare of individuals and the economy as a whole.
The Ministry for Economy will serve as the focal point for the alliance.