Remarks delivered by Mr Ariff Ali the Governor of the Reserve Bank of Fiji at the Pacific Fast Payments Workshop
3 December 2025, Nadi, Fiji.
Director for Asia-Pacific Regional Cooperation Division, Ministry of Finance,
Japan Mr. Natsuki Tsuda (attending remotely)
World Bank Divisional Director, Mr. Stephen N Ndegwa
National Reserve Bank of Tonga Governor, Mr. Tatafu Moeaki
CEO for Kiribati Financial Services Authority, Mr. Kevin Rauatu
Deputy Secretary General Pacific Islands Forum Secretariat
Central Bank Colleagues
Resource Persons
Distinguished Guests
Ladies and Gentlemen.
Ni Sa Bula, and a very warm welcome to each and every one of you to the inaugural Pacific Workshop on Fast Payments Systems. We extend our sincere thanks to the World Bank and the Pacific Islands Forum Secretariat for bringing the Pacific community together to discuss this very topical subject, which is dear to my heart.
I say ‘dear to my heart’ because I was the Team Leader when the Reserve Bank of Fiji first implemented the Real Time Gross Settlement System almost two decades ago. I learnt a lot about project management, collaboration with external stakeholders, and application of technology and these experiences equipped me to lead major reforms in recent years, such as the National Payment Systems. More importantly, it has taught me that the evolution of the payment system is more than a technical journey, it is transformative as well as a strategic development initiative for us in the Pacific.
The development and implementation of a safe, reliable, and efficient national payment system is a cornerstone of the financial sector. Its significance lies in its ability to drive financial inclusion, accelerate digital transformation and enhance cross-border connectivity and foster sustainable economic development. Fast payments are not just a trend but a fundamental evolution in the way money moves.
By enabling seamless payment experiences, it is reshaping consumer expectations, transforming business models, and redefining the very fabric of modern financial ecosystems.
To our visitors from the region, your attendance at this workshop has contributed to tourism numbers, as we are on track to achieve a third successive year of record visitors to our shores. I do hope you will get some time to see our beautiful country and use one of the various fast payment methods to contribute towards our economy.
However, please note that foreign cash is also readily accepted. Speaking of cash, you may be aware that the President of Fiji, His Excellency Ratu Naiqama Lalabalavu, launched our new 2025 Polymer note series yesterday. Some of you may be wondering why the RBF is investing in new design notes after investing heavily in the national payments system over the last few years.
Well, there are several reasons. Firstly, we need to continuously upgrade the security features on the notes to protect them against counterfeiting. Secondly, cash is still widely used in Fiji, its usage accounting for almost 8.0 per cent of GDP. A recent survey by RBF revealed that 62 per cent of Fijians prefer to use cash for day-to-day expenses. Finally, the new notes are all polymer substrate, which enhances durability enabling it to endure the demands of everyday handling, thus reducing replacement cost for the Bank. So, while there has been substantial growth in digital payments, cash remains “king” in some respects.
Dear colleagues, before I share my thoughts on Fiji’s payments system journey, let me highlight why a robust, efficient payments system is essential.
Why are Payment Systems Important?
The global payments industry is undergoing a paradigm shift driven by evolving economics, changing demographics, and customers’ growing demand for faster, cheaper, and more secure payment solutions. According to the 2025 Global Payments Report by McKinsey, there will be 3.6 trillion transactions worldwide this year, totalling 9.9 billion per day. Value-wise, that is US$2.0 quadrillion (or 2000 trillion) per year, or US$5.0 trillion per day.
Payments are the bloodstream of any economy. Some have characterised it as the “plumbing system of the economy”. When they flow smoothly, businesses grow, firms thrive, and confidence strengthens. When they clog, it gets messy, and everything suffers.
Queen Maxima, who I had the pleasure of meetings at the recent IMF/World Bank Meeting, who is also the United Nation’s Secretary Generals’ special envoy for inclusive finance said, “that an affordable and reliable payments system is the gateway to other financial services, like savings and insurance and is the foundation to financial health and resilience for individuals and households”. I could not agree more.
There is growing and credible body of research by the BIS, IMF, World Bank showing that fast or real-time payment systems support economic growth by lowering transaction costs, expanding inclusion, enabling faster cash flows especially for MSMEs, and increasing productivity.
India’s Universal Payments Interface is widely cited not only as the world’s fastest scaling real-time payment system but also as an interoperable, zero or low-cost instant payment system that has transformed the entire economy, from street vendors to ecommerce.
We all have heard of M-Pesa from Kenya, launched in 2007 which has brought about massive financial inclusion, especially in rural areas, empowerment to women through secure savings and remittances, as well as, business efficiency for MSMES and farmers, enabling real-time payments for produce and supply chains.
There are similar outcomes from payment system investments in Mexico, Brazil, the Philippines and Thailand. Unfortunately, there is not much published research on the Pacific Islands.
Fiji’s Payment System Journey
Ladies and Gentlemen, later the RBF will be making a presentation on Fiji’s journey. Therefore, I will only briefly touch on our payments system journey. As in other Pacific Islands, all our economies transitioned from barter to shells and metals, and then to coins and notes. As a British colony, Fiji used the British Sterling as legal tender until 1969, just before we gained independence in 1970. Since then, our Fijian notes and coins in circulation have continued to grow and are widely used.
Automated teller machines (ATMs), EFTPOS, and internet banking in the late 1990s set the platform for electronic and digital transformation early this century, followed by the launch of large-value RTGS, mobile money, and digital money.
I would say that one of the unexpected positive externalities of the COVID-19 pandemic was the momentum it gave to our payment system reform. As movement became restricted and physical interactions were limited, the urgency to adopt more efficient, digital, and contactless payment solutions accelerated significantly. This created an opportunity for us to drive reforms that might otherwise have taken years to gain traction. This transformation was built on a strong legal foundation: the National Payment System Act of 2021 and its accompanying Regulations of 2022, providing RBF the legal authority for this reform.
Supported by a strong legal mandate and technical support from the World Bank and IFC, the RBF embarked on an ambitious investment to modernise the payments infrastructure. We revamped our RTGS in phases and introduced the all-new Electronic Funds Transfers (EFT) for bulk payments and the Instant Funds Transfers (IFT) for retail payments. Simultaneously, we invested in the Central Securities Depository, where Government debt securities are dematerialised by converting physical securities into electronic book-entry. We then integrated the mobile wallets with the banking platform and worked with all stakeholders to achieve greater interoperability. This initiative led to interoperability between Wallet-to-Banks, Banks-to-Wallet, and Wallet-to-Wallet in Fiji.
What is the impact of this payment system reform?
Dear colleagues, as a result of this change, we have seen a notable increase in internet banking: both the value and volume have risen almost 10-fold since 2015. The growth has been more profound in the past five years. While mobile wallets have been in Fiji since 2010, person-to-person transfers have skyrocketed since 2020, and we estimate 50 million transactions totalling $3.0 billion this year. Similarly, payments via QR code, bank-to-wallet, and wallet-to-bank transfers have surged, while inward remittances via mobile networks now account for almost half of the $1.3 billion in annual inflows.
What do these numbers really mean? What is the impact of our investment in the national payments system infrastructure?
What do these numbers really mean? What is the impact of our investment in the national payments system infrastructure? The evolution of payments is a story of bridging gaps we once felt were impossible. A farmer in the western side of this island can now receive money on the same day he sells his produce to a market vendor in Suva. A father working on an island resort can send money to his daughter studying at the University in the capital city without leaving the island. And my brother, a fisherman in Ba, can receive remittances from our sister in Sydney within minutes on his phone, not days. It also means that the Government can disburse funds quickly to its citizens when disaster strikes, as was evident during the COVID-19 pandemic.
This remarkable growth reflects the progress we have made in modernising Fiji’s payment infrastructure and meeting the evolving needs of our economy. Fiji’s overall population is young, with a median age of 27.6 years, and 81 per cent of our people use smartphones, with 95 per cent having internet access. This has led to the rapid adoption of the digital payment platform.
Over the last decade, the role of the RBF has transformed not only into a regulator, operator, and facilitator, but also into a creator and enabler of an environment for the structured development of Fiji’s payment ecosystem. Looking ahead, the overall direction of reform will have a holistic impact on Fiji’s payment ecosystem. As the payment system evolves, the experience and acumen of participants are expected to improve, enabling financial and commercial activity to occur more efficiently and unimpeded.
What’s Next in our Payment System Journey
What’s next for in or payments systems? The RBF actively supports innovation where feasible and works closely with the private sector and the Government to ensure that the regulatory architecture is robust and ready to enable these developments. This ethos is nicely captured in our latest initiative, which is the launch of the “Innovation Hub”, a collaborative initiative led by the RBF. It is dedicated to accelerating innovation in financial services across Fiji and the wider Pacific region through tailored support programmes, community-building, and strategic partnerships.
The RBF has recently released the national QR code standards to support interoperability, security, and convenience. QR Code was first introduced in 2019 and the value of personal wallets to businesses using QR codes has increased fourfold from $86.2 million in 2021 to $444.4 million in 2024. Similarly, the number of transactions increased nearly sixfold from 1.6 million in 2021 to 9.4 million in 2024.
In addition to this initiative, Fiji is working on a National Digital identity project. Payment reforms move faster when countries have a trusted digital identity, tiered know-your-customer, and simple onboarding. With strong government collaboration and 19 Ministries involved, the draft National ID Bill will be tabled in Parliament early next year.
In conclusion, let me highlight that “fast or speed” is not just a technical feature, it is considered as a critical enabler of development. In an increasingly digital and interconnected world, the ability to send and receive funds instantly is not a luxury, it has become a necessity.
In the islands where distances are vast and infrastructure can be limited, the ability to move funds quickly isn't just a convenience; it's a necessity. By investing in real-time payment infrastructure, fostering digital literacy, and building inclusive platforms, we can ensure that the Pacific is not left behind in the digital age.
Over the next two and a half days, you’ll learn from experts and from each other. You’ll dive into fast payment innovations, explore the regulatory landscape, tackle adoption challenges, and share best practices. But before we start, let me share a few lessons from Fiji’s own journey—lessons I believe will resonate with you.
First, modernisation isn’t just about technology, it must serve real national goals: financial inclusion, lower costs, digital innovation, and safer payments.
Second, interoperability wins every time. When banks and mobile money were connected, everything changed. Fragmented systems only slow us down.
Third, central banks have a unique role. In the Pacific, we must use our convening power to bring everyone together—set standards, safeguard trust, and ensure a level playing field.
Fourth, risk management is non-negotiable. Cybersecurity, regulatory compliance and resilience aren’t optional—they’re the foundation of trust.
Fifth, collaboration is the secret ingredient. The best reforms happen when everyone builds together.
Sixth, start small and scale smart. Our sandbox approach allowed us to test deeply, reduce risk, and build momentum.
Finally, the Government can be a game-changer. During COVID-19, when social welfare payments were delivered via mobile wallets, adoption skyrocketed—and trust followed.
So, as you begin this workshop, remember this: payment systems aren’t just pipes and platforms—they’re bridges to inclusion, engines of growth, and catalysts for change. What you build here can transform economies, empower communities, and change lives.
Let’s not just talk about the future—let’s create it. Together.
Thank you, and I wish you an inspiring and productive workshop.
Vinaka vakalevu
[ENDS]
