The Central Bank is overhauling Barbados’ payment system in a move that promises faster, cheaper and more secure transactions for everyday consumers and businesses.
The new Instant Payments System (IPS), set to launch in March 2026, will replace what officials describe as an outdated and fragmented network that currently slows down money transfers and limits access for smaller financial institutions.
Governor Dr Kevin Greenidge said the new system will create a more inclusive financial ecosystem, eliminating barriers between banks, credit unions, and other financial institutions to allow seamless real-time transfers.
“This is perhaps one of the most revolutionising things that we’ve done since establishing the Central Bank,” Greenidge said during a panel discussion at the Bank’s 45th Annual Review Seminar on Monday.
Under the current system, transferring money between different banks or credit unions can take hours or even days, with some institutions charging fees for instant transfers.
“We have what we think is a lack of interoperability. In layman’s terms, the systems don’t speak to each other very well. There’s a lot of time and cost in transactions and transfers,” Greenidge noted.
The IPS will change that by allowing real-time transactions across all participating financial service providers, including commercial banks, credit unions, and approved fintech companies.
For ordinary Barbadians, this means:
– No more waiting for payments to clear—Transfers between accounts at different institutions will happen instantly.
– Lower transaction costs—The system is expected to reduce fees associated with digital payments.
– More payment options—Consumers will be able to send and receive money directly from mobile devices, even without cash or cards.
“You may go to a store and not have your card or cash, but if you have your phone, you can make a payment from your mobile device,” said Deputy Governor Michelle Doyle, who is leading the IPS project. “That means greater commerce.”
One of the key goals of the IPS is to break down barriers for smaller financial players, including credit unions and fintech startups. Currently, some fintech firms approved by the Central Bank struggle to integrate with larger banks due to technical limitations.
Credit union leaders have welcomed the change. Glyne Harrison, head of the Barbados Public Workers’ Co-operative Credit Union, said the IPS would make life easier for consumers and allow smaller institutions to roll out services more quickly.
Steve Belle of the City of Bridgetown Credit Union called it a “public good” that will reduce costs and expand access.
The first phase of the IPS rollout will include major banks, the three largest credit unions, the Barbados Stock Exchange, and the Accountant General’s Department. Participation will become mandatory for all licensed financial institutions.
Officials say the system will modernise payments and, at the same time, position Barbados for future financial innovations.
“Technology is moving so fast,” Greenidge said. “As regulators, we have to facilitate those movements and be ahead of the curve.”
