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FMI
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IGF JOURNAL
VOLUME 24, NO. 1
Electronic prepaid cards have become
increasingly
important
replacements
for paper-based payment instruments
especially for government remittances.
Government payments are well suited to
prepaid cards as they are often high vol-
ume, recurring and issued to citizens who
do not always have access to the tradition-
al banking system. Prepaid cards would
eliminate or reduce problems related to
cheque writing, mailing, replacing and
reconciling as well as problems associated
with acceptance and security. The benefits
in the Government environment must be
expressed and positioned in terms of cost,
operational and administrative efficien-
cy and enhanced service delivery, while
providing a broad array of citizens with
flexibility and convenience.
Conclusion
We may never see a totally chequeless
society, but the transition to more integrat-
ed and automated payments systems is hap-
pening. New electronic payment solutions
are delivering on the promises of cost sav-
ings, convenience and control. Innovations
such as prepaid cards, mobile payments and
contactless cards will exert a strong influ-
ence on the market. However, we must em-
phasize that in an information technology
era, it is imperative to ensure that delivery
About the Author
Nicholas Grillis is currently the Manager,
Banking Initiatives in the Banking and Cash
Management Sector of Public Works and
Government Services Canada (PWGSC).
of payments is efficient, safe and trusted; ir-
respective of how the payments are actually
provided. Moreover, the risks, security and
complexity cannot be underestimated in
delivering a thriving payments system with
proper regulation to ensure that the nec-
essary robustness, safety mechanisms, and
competitive frameworks are in place.
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