Payment Systems play a vital role in the economy of a country. A payment system is a system used to settle financial transactions through the transfer of monetary value and consist of the various mechanisms that facilitate for the transfer of funds from one party (the payer) to another (the payee). A payment system includes the participants (institutions) and the users (customers/clients), the rules and regulations that guide its operation and the standards and technologies on which the system operates.
A well-designed and well-functioning payment positively contributes to the financial stability of the country and to the well-functioning of the country's economy. The role of the Bank of Zambia is to ensure that Zambian payment systems are not only safe, but secure, reliable and efficient. This important responsibility is defined within the Bank of Zambia Act (1996) National Payment Systems Act (2007), which is available here.