A new Electronic Funds transfer system called NamPay, has been gradually introduced into the local market, comprising of an enhanced debit orders system called EnDO, an enhanced credit payments system called EnCR, as well as a near-real-time credit payment system referred to as NRTC.
The Bank of Namibia, in collaboration with the Payment Association of Namibia, and in partnership with the banking industry have been spearheading the initiative.
“NamPay is being introduced in terms of the law, to ensure that Namibia’s national payment system remains on par with international standards, and will replace the electronic funds transfer system currently being used, ultimately transforming electronic fund transfers in Namibia from a consumer benefit perspective,” said Bankers Association of Namibia CEO, Brian Katjaerua.
He announced that NamPay has already gone live with EnDO and EnCR components of the system, while the NRTC streams have started with activation since last year.
“All banks have started with, and are far advanced with the processes to migrate customers to the new platforms,” he added.
NamPay Electronic Funds Transfer System Explained
EnDo
The current debit order system will be replaced by an enhanced collections process, called EnDO. The most prominent feature of EnDO would be that debit orders will no longer be deducted from clients’ accounts in a specific, predetermined or prioritised order. EnDO will assign random sequences to debit orders submitted for collection in the national payment system. A key feature of EnDO is the non-preferential treatment of payment instructions principle, which ensures that all debit order collectors will now have an equal opportunity to collect funds from customer accounts.
This means that the client’s debit orders will be deducted from their bank account in a different order every month, which implies that their vehicle instalment or home loan instalment (unless they have a direct salary deduction arrangement), may not necessarily be paid first every month. In simple terms, Katjaerua explained that debit orders may not necessarily go off the client’s account in the same order or the usual monthly date that they may have become accustomed to.
EnCR
Payments made to beneficiaries through online platforms will be processed through the enhanced credit payment system or EnCR service. EnCR payments are processed between banks as received between 04h00 and daily cut off time of 14h00 on weekdays and 09h00 on Saturdays. Due to more frequent settlements between domestic banks during the day, EnCR payments will reflect on the customer’s account on the same day. Katjaerua said the fee charged for initiating a payment from any of the bank channels remains as per the fee structure of the particular bank, and clients are welcome to consult their bank in this regard.
NRTC
In addition to the EnCR payment stream, immediate payments, NRTC will be introduced. According to Katjaerua, the NRTC payment stream enables a customer to transfer funds in real-time to any of their beneficiaries within the same business day.
“NRTC payments are processed between banks as received between 04h00 and daily cut off times of 16h00 on weekdays and 11h00 on Saturdays, and will reflect within one minute (60 seconds) on the customer account. Please note that the fee charged for initiating a payment from any of the bank channels remains as per the fee structure of the particular bank,” said Katjaerua.
According to Katjaerua, all members of the Bankers Association will gladly answer any further queries from their clients.
“We fully expect the NamPay system to bring excellent benefits to the banking public, and I certainly commend the technical teams of all our members banks for their diligence and collaboration across the board to bring this to fruition,” he said.