Sri Lanka spends around 1.5 percent of its Gross Domestic Product (GDP) on printing money each year and this could be saved with the Justpay electronic payment system that has been launched by LankaClear, LankaClear General Manager/CEO Channa de Silva told the media at the launch of ‘LankaPay Technnovation Awards 2017’ in Colombo last week. He said the company hopes to attract 20 percent of the low value retail payment sector by 2020 and thereby save the money wasted by printing money.
“The conventional and time consuming mode of using cash for transactions should be done away with, and we should move to new methods such as electronic payments, which is widely used in developed countries,” de Silva said.
However, not withstanding the hype about shifting to electronic modes of transaction soon, the shift has been moving at a snail’s pace due to a lack of trust and the ability to use modern technology by a large segment of the population.
“We have launched programs with the banks which are LankaClear’s shareholders and customers to educate the public on the benefits of using their smart phones for transactions. There is no need to fear the safety of one’s money as measures are in place to prevent fraudulent transactions,” de Silva said. LankaClear has partnered with the banks and merchants to come up with apps through which transactions could be done via a smart phone similar to booking a taxi through PickMe or Uber. Currently around three billion cash transactions take place each year.
“We hope to come up with around three apps within the next two to three months to promote electronic transactions,” an official of LankaClear said.
LankaClear has also launched the Lankapay card which could be used at any ATM or Point of Sale (POS) points locally or abroad.
“Our aim in introducing innovative transactions through modern technology is to help people save time, banks to save money and the economy to develop,” de Silva said.
The Common Card and Payment Switch (CCAPS) and Lankapay Common Electronic Fund Transfer Switch (CEFTS) are payment systems launched by LankaClear to promote online payments in the country.
The LankPay Technnovation Awards 2017 is aimed at driving financial inclusivity by enhancing the efficiency of the country’s national payment network and propel the use of electronic transactions.
The awards will recognize banks and non-banking financial institutions which have been using innovative technology to promote digital transactions.
Twenty one awards under eight categories will be up for grabs at the awards.
LankaClear, the operator of LankaPay, set up in 2002, is governed and regulated by the Central Bank.