Samoans are set to benefit from their new national digital payment platform, which will make it easier and quicker to transfer funds, including large volume for retail payments.

The proponents of the Samoa Automated Transfer System (SATS) also expect it to assist accelerate the growth of digital financial service offerings by financial institutions and drive inclusive economic development, says a joint statement issued on Tuesday by the International Finance Corporation (IFC) and the Central Bank of Samoa (CBS).

 The new digital platform is expected to increase access to the financial system for all Samoans, half of whom do not have a bank account or use formal financial services. It will enable electronic domestic payments, ensuring real-time settlement of interbank payments.

Central Bank of Samoa (CBS) Governor, Maiava Atalina Emma Ainuu-Enari highlighted the benefits of the new digital platform and said its introduction will transform Samoa into a digital economy.

“The new Samoa Automated Transfer System is transformative for Samoa’s banking system, helping us create a more resilient and modern financial system, which is more efficient, transparent, and safe,” Maiava said. “It will enable us to better serve consumers and will facilitate the ability of banks and financial institutions to offer new services. 

"It is a major pillar of our move to a more digital economy, bringing far-reaching benefits including reducing the cost of exchanging goods and services, driving down the role of cash and manual processing of payments, and improving economic efficiency."

Samoa’s current payment system is inefficient and can result in significant delays in clearing funds, which hampers everyday commerce and economic activity, as transfers between banks can only be carried out manually using the clearing of cheques.

The ongoing financial infrastructure reform program, overseen by the CBS, will also see the launch of a Central Securities Depository. This is a financial market platform based on an electronic registry, ensuring safe custody of government securities. The Central Securities Depository, which will be linked to the SATS system in real-time, will enable the issuing, trading, and settlement of securities, reducing the risks for all parties, increasing efficiency, and supporting the development of Samoa’s capital markets. 

The IFC Country Manager for Australia, New Zealand, Papua New Guinea, and the Pacific Islands, Judith Green talked about the overall benefits of the digital platform in promoting economic development and financial stability in Samoa. 

“Secure, affordable, and accessible payment systems and services help expand financial inclusion, foster economic development and activity, and support promoting financial stability," Ms. Green said. "This new platform will have multiple benefits for the people of Samoa, contributing to the growth of new financial services and helping make life easier for businesses.

“IFC is working with central banks and other partners across the Pacific to help develop safe, reliable, and efficient national payment systems, which are crucial to help reduce poverty and boost people’s prosperity.”

With the support of the governments of Australia and New Zealand as well as the World Bank, IFC has provided technical expertise to the CBS in relation to building modern financial infrastructure.

Australia's High Commissioner to Samoa, Emily Luck said the new digital platform has the "power of transformative digital solutions" to empower women and communities. 

“We know the power of transformative digital solutions to lift communities, particularly women and small businesses, so we congratulate the Central Bank of Samoa for this critical work that ensures financial empowerment and resilience for Samoa’s people as we enter an increasingly digital era," the High Commissioner said. "Australia is proud to support transformative digital solutions across the Blue Pacific making everyday transactions more equitable, ensuring equitable outcomes, progress, and prosperity for all." 

New Zealand's High Commissioner to Samoa, Dr. Trevor Matheson added: “Aotearoa New Zealand is proud to support the development of this important platform which will strengthen Samoa’s financial infrastructure. Strong financial systems like this contribute to shared prosperity and stability in the Pacific, helping to underpin sustainable development."

This latest development in Samoa comes after similar initiatives in Papua New Guinea and Fiji by IFC to help facilitate responsible and inclusive digital financial services in the Pacific.