Assessment of the Retail Payments Ecosystem in the Solomon Islands

The Solomon Islands has an opportunity to leverage ongoing payment modernization efforts, including the Automated Transfer System infrastructure, to help drive innovation in retail payments, increase the uptake of digital financial services, and promote financial inclusion.

The Solomon Islands, a Pacific archipelago, stands at a pivotal juncture in its journey towards financial inclusion and modernization of its retail payment systems. In the “Assessment of the Retail Payments Ecosystem in the Solomon Islands” report, co-authored by Kapronasia, the Central Bank delves deep into the current payment landscape, revealing an overwhelming reliance on cash transactions. Despite the presence of financial infrastructure, electronic payment methods remain largely untapped, primarily due to their limited reach outside the capital city, Honiara.

The report sheds light on the challenges faced, from limited infrastructure to regulatory gaps, and presents a roadmap of five strategic actions to foster financial inclusion. These actions range from implementing an interoperable digital payments infrastructure to diversifying digital financial services tailored to the market’s needs. As the Solomon Islands embark on this transformative journey, collaboration, regional coordination, and a shared vision will be key to unlocking the potential of digital payments and achieving broader financial inclusion.