The Central Bank of Barbados is preparing to launch a transformative Instant Payments System (IPS) in March 2026, a move that promises to make financial transactions faster, safer, cheaper and more inclusive across the economy.
The IPS is part of the Barbados Payments Modernisation Project, being implemented with support from the World Bank, and is set to overhaul the island’s outdated and fragmented payments infrastructure. The goal: to build a real-time, low-cost, and secure platform that works for consumers, businesses, and government alike.
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A Game-Changer for the Entire Economy
“This is perhaps one of the most revolutionising things that we’ve done since establishing the Central Bank,” said Governor Dr. Kevin Greenidge, during the Central Bank’s 45th Annual Review Seminar.
But it was Deputy Governor Michelle Doyle who captured the full potential of the new system, calling it a “game-changer” during a panel discussion on Digital Transformation: Harnessing Innovation for Regional Development. She outlined a compelling vision where the IPS becomes the financial backbone of a more efficient, inclusive, and resilient economy.
“All of these factors really resonate with regard to creating a system that fosters better economic activity as well as greater financial inclusion,” Doyle said.
What the Instant Payments System Will Deliver
The IPS will enable real-time transactions between all licensed financial institutions, including:
- All six commercial banks
- The three largest credit unions
- The Barbados Stock Exchange
- The Accountant General’s Department
This system will eliminate delays in interbank transfers, reduce costs, and open the door for mobile-based payments – empowering Barbadians to send and receive money from their phones, even without cash or cards.
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How It Will Impact Everyday Life and Business
For consumers, the benefits are immediate:
- Instant transfers, even between different institutions
- Lower transaction fees
- Secure payments using mobile apps or online platforms
“You may go to a store and not have your card or cash, but if you have your phone, you can make a payment directly,” Doyle explained. “That means greater commerce.”
For businesses, Doyle noted that lower payment processing costs could improve margins and increase transaction volume.
For Government, the system will streamline tax collection and revenue management, improving cash flow and efficiency.
Driving Inclusion and Innovation
One of the IPS’s most important features is its ability to break down technical and financial barriers. Fintech firms and credit unions, which previously struggled to integrate with larger banks, will now have real-time access to the national payments infrastructure. This levels the playing field for small and medium-sized enterprises (SMEs) and underserved communities.
Industry leaders agree. Glyne Harrison, head of the Barbados Public Workers’ Co-operative Credit Union, said the system would help consumers and accelerate service innovation. Steve Belle, of the City of Bridgetown Credit Union, described the IPS as a “public good” with the power to expand access and reduce costs across the board.
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Securing the Digital Economy
While speed and convenience are central goals, cybersecurity is also a top priority. Doyle emphasized that the Central Bank is embedding robust protections into the system’s design.
“How do you achieve enhanced fraud detection when dealing with quicker settlement times?” she asked. “This is one of the critical areas we are managing as part of our digital financial literacy and cyber resilience strategy.”
Looking Ahead
With participation in the IPS eventually becoming mandatory for all licensed financial institutions, the Central Bank is laying the foundation for a fully modernized, inclusive financial ecosystem. Greenidge noted that the system also positions Barbados to embrace future financial innovations with confidence.
“Technology is moving so fast,” he said. “As regulators, we have to facilitate those movements and be ahead of the curve.”
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