4 days ago
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Belize’s financial system is moving into a new digital era with the introduction of the Instant Payment System, IPS, by the Central Bank of Belize. At a press conference held this morning, Central Bank Governor Kareem Michael officially unveiled the platform, describing it as a major upgrade to the country’s existing Automated Payment and Securities Settlement System (APSSS). The IPS will allow for full interconnectivity between domestic banks and credit unions, enabling seamless online transactions across institutions. Unlike the current APSSS, which offers electronic services but within limited operating hours, the IPS will introduce 24/7 real-time processing for online transfers, payments, and deposits, bringing greater speed and convenience to Belizean consumers and businesses. Governor Michael also announced that a contract was signed this morning with Montran Corporation, a New York-based firm specializing in banking technology, to move the IPS from planning into full implementation.
Kareem Michaels, Governor of the Central Bank: “The Central Bank executed a contract agreement with our long-standing and trusted partner Montran Corporation, marking the official transition of this project from the planning stage to implementation. What we’re taking is international best practices and we’re applying those into our domestic context. And the first thing to point out is the feature of continuous availability, which allows payments to be made at any time every day of the year. What’s the current experience? With apps, digital payments operate largely within banking hours with same-day processing dependent on settlement windows. Many in the public don’t realize this but there are different windows, 9 to 10:30, and then after that 11 to 12, where you process your EFT and your IFT, and then cheques comes afterwards. If you try putting a payment at 3 o’clock that won’t be processed until the next day, next day to finality. Not ideal. So what IPS will deliver is payments 24 hours a day, seven days a week, 365 days a year, allowing money to move when the economy moves not just when the banks are open. These transactions will be processed and settled typically in 10 seconds or less. It is like sending a WhatsApp message.”
In outlining the evolution of the system, Michael explained that the IPS builds on years of groundwork dating back to 2016, when the APSSS was first introduced as an automated clearing house to facilitate electronic fund transfers, cheque clearing, and improved settlement efficiency. He noted that the system was expanded in 2023 to include credit unions and further upgraded in 2025 to increase capacity. The IPS, he said, represents the next phase. Governor Michael also acknowledged the World Bank as a key partner in the initiative, referring to the institution as a “big brother” in guiding the project. He emphasized that local banks must now prepare to upgrade their own systems to integrate smoothly with the IPS infrastructure. Meanwhile, World Bank representative Federico Baechli echoed the benefits of the system, highlighting its potential to improve the ease of doing business in Belize and commending the country for taking this step toward modern financial services.
Federico Baechli, Country Representative, World Bank: “So what are the implications of faster payments on Belize’s development agenda? For MSMEs and merchants, it removes the biggest barrier to digital commerce. For the unbanked, it means reaching the last 20 percent. For disaster response, it matters enormously because it helps ensure money gets dispersed quickly and efficiently to disaster-affected people and businesses providing relief when they need it the most. And this is key for one of the most climate-vulnerable countries in the world. Lastly for cross-border payments and regional integration, faster payments accelerates Belize’s ambition to become a logistics hub. How so? Belize sits geographically and economically at the intersection of the Caribbean and Central America. Logistics is not just about ports, roads, airports. It’s equally about the digital financial infrastructure. Investments in fast payments means investing in relationships across the globe ensuring Belize’s financial system is compatible with regional and global payment systems. To close, today’s signing is a signal of progress and of what comes next. Belize is moving as a regional leader, building not just modern payment systems but a resilient and interconnected financial infrastructure. The World Bank Group is truly proud to have been part of this journey to support the Central Bank. We look forward to continuing to support Belize through implementation as it continues to take ambitious, deliberate and steadfast steps to achieve its goals. I’m honored to congratulate the Central Bank of Belize, and especially Governor Kareem Michael for his leadership, initiative, and remarkable vision in moving towards building a faster, more inclusive financial sector in an increasingly interconnected economy.”
Meanwhile, Montran Corporation representative Matt Walsh explained that Belize is not alone in this transition. He noted that instant payment systems are being adopted worldwide, with Montran currently providing services in approximately 100 countries across five continents./
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