Ireland’s national payments strategy focuses on digital ID and future payment tools

Ireland’s Minister for Finance, Jack Chambers, launched the National Payments Strategy, which is shaped as a forward-looking plan aimed at transforming the country’s payment landscape by 2030.

The strategy prioritizes emerging payment technologies while maintaining the availability of traditional options like cash. Central to this vision is the adoption of digital payment tools, secure authentication methods, and enhanced fraud prevention measures.

One of the key components of the strategy is the European Digital Identity (EUDI) wallet, which aligns with EU efforts to promote an interoperable digital ID for use across member states. As more consumers turn to digital payments, the integration of the EUDI wallet aims to streamline authentication processes, enabling Irish consumers to use a single digital ID across various services, including government interactions and financial transactions.

Evolving payment methods and consumer choice

Minister Chambers emphasizes the changes in Ireland’s payment ecosystem over the past decade. The strategy notes that while many consumers now prefer contactless and digital payment options, including card payments and mobile wallets, cash remains an essential payment method, especially for older generations.

“There has also been much discussion around the decline in the use of cash for day-to-day payments and the need to protect this form of payment which remains the preferred form of payment for so many in our society, including older people,” says Minister Chambers.

“To ensure the Irish economy benefits from the advantages of emerging technologies and payment methods, while also taking into account the need to ensure the continued availability of more traditional forms of payments, this Strategy sets out a vision for the future of payments in Ireland.”

Four pillars of the strategy

The strategy is anchored by four key pillars, with digital identity and authentication playing a role in shaping the future of payments.

Consumers will have access to the latest digital payment tools while ensuring inclusivity for those who prefer cash. Secondly, strengthening digital ID frameworks and authentication methods, such as the EUDI wallet, is set to bolster consumer trust and reduce the risk of fraud.

Additionally, the strategy highlights market-driven innovation in payment systems, encouraging Irish firms to keep pace with EU digital standards. Lastly, increased data collection and analysis will provide insights into payment trends, with the goal of ensuring that policy decisions are informed by consumer behavior.

Ireland is making strides in digital transformation, as highlighted in the 2023 progress report on the implementation of the Digital Ireland Framework.

Fraud prevention and cross-sector collaboration

With fraud being a concern, the strategy outlines an approach to enhance security. Measures include the formation of a cross-sector anti-fraud forum, bringing together online platforms, financial institutions, and telecommunications firms. Additionally, public bodies are required to register inbound-only phone numbers to prevent fraudsters from impersonating government services.

The government also plans to establish a shared fraud database and work with stakeholders to develop fraud prevention legislation. The focus on secure digital identities through the EUDI wallet and other authentication mechanisms is expected to be instrumental in this effort.

To support further digital payment adoption, an Account-to-Account Working Group will explore alternatives to traditional payment methods, making account-based transactions more accessible and reliable. The strategy also highlights the importance of preparing for potential market disruptions, with contingency plans in place for stability within the payments sector.

Additionally, Bank of Ireland invested millions to upgrade its phone and CRM systems, including adding voice biometrics for authentication and fraud prevention.

Article Topics

biometric authentication  |  biometric payments  |  biometrics  |  digital ID  |  digital identity  |  EU Digital Identity Wallet  |  fraud prevention  |  Ireland