Modernisation of the National Payment System: A Perspective from the Central Bank of Trinidad and Tobago

Posted on Jan 24, 2025 by By Jeanette Joseph, Assistant Manager, Payments and Financial Markets Infrastructure, Central Bank of Trinidad and Tobago, with contributions from Kemba Turpin and Melissa Saldenha-O’Connor

Jeanette Joseph

Shaping Tomorrow’s Payments Landscape

The global evolution of payments is changing the payments landscape of Trinidad and Tobago. The Central Bank of Trinidad and Tobago has seen new players offering new payment services and products. These new products and services, supported by fintech solutions, create new risks to the domestic payment systems that require management and control. The Bank has therefore embarked on a strategy to modernize Trinidad and Tobago’s National Payment System by 1) developing comprehensive payment systems legislation, 2) enhancing its engagement with fintechs, and 3) examining cross-border payment activity consistent with the Financial Stability Board’s (FSB) Recommendations.

To ensure that the 1.4 million citizens of Trinidad and Tobago benefit from a modern, safe, secure, and efficient payment landscape, the Central Bank set out to develop enabling legislation that covers the Central Bank's functions and powers and the licensing, regulation, and oversight of payment systems and Payment Service Providers (PSPs). The Payment Systems and Services legislation will grant the Central Bank the powers to designate payment systems and PSPs that become systemic as well as provide enforcement powers to ensure compliance with the relevant laws.

The Bank performed a gap analysis against the FSB Recommendations to assess its preparedness to implement the cross-border recommendations. The Bank is working towards implementing the required measures to improve cross-border payments.

In addition, the Bank endeavours to engage with fintechs that offer innovative payment solutions and provide opportunities for financial inclusion for the unbanked or underbanked.[1] The Central Bank will continue to navigate the payments landscape to ensure that Trinidad and Tobago maintains a progressive payments ecosystem.

The Game Has Changed: Adapt and Refocus

The Central Bank consistently monitors global payment trends and has received numerous expressions of interest in novel and innovative digital payment services with varied business models. For instance, from 2014 to 2019, the number of expressions of interest in providing e-money services grew steadily.[2] In October 2024, Governor of the Central Bank, Dr. Alvin Hilaire, presented at the Trinidad and Tobago Stock Exchange Capital Market Conference 2024, Cashless, Less Cash, or No Cash? The Future of Electronic Money in Trinidad & Tobago. Governor Hilaire explained that while cash is prominent in financial transactions, electronic money is an important option.

While domestically, fintechs have made an impact, to date, it has been limited but encouraging. Notably, close to ninety (90) entities have engaged with the Supervisory Authorities (Central Bank, Trinidad and Tobago Securities and Exchange Commission, and the Financial Intelligence Unit of Trinidad and Tobago) since the launch of the Joint Regulatory Innovation Hub in 2020, to enquire about the registration requirements for various fintech products.

The increased interest in developing innovative payment products and services, coupled with the Bank’s commitment to welcoming technological developments, has been ...


[1] According to a recent survey conducted by the Trinidad and Tobago International Financial Centre (TTIFC), at least 25% of the T&T population is said to be underbanked.

[2] As at December 2014, the Central Bank received 5 expressions of interest, which increased to 47 at the end of 2018.


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