There are two (2) main classifications of Payment Systems;

1. Large Value Payment Systems (LVPS) – these systems typically process high-value critical payments electronically and instantly in real-time. They mostly relate to interbank / inter-financial institutional transactions therefore these large value systems are strictly regulated by Central Banks of respective countries. The important features that these systems offer are speed, reliability, safety, convenience, cost, and accuracy.

The Reserve Bank of Vanuatu is the only institution within the country that is currently operating two (2) Large Value Payment Systems. These are;

1. The National Payment System - VANKLIA
2. SWIFT (Society for Worldwide Interbank Financial Telecommunications)

2. Retail Payment Systems (RPS) - they typically handle transactions that are low in value, but very large in volume, relating to individuals, firms and corporates. RPS payments includes both paper-based as well as electronic-based systems and they generally cater for the payment of transactions related mainly to settlement of obligations arising from the purchase of goods and services.

The following are examples of payment methods for Retail Payment Systems;

1. Cash Payment
2. Paper-Based Payments
   1. Cheque
   2. Demand Drafts
   3. Bankers Cheque
3. Card Based Payments
   1. Credit Card –
   2. Debit Card –
4. Electronic Payments and Remittance
   1. Electronic Clearing Service
   2. Electronic Funds Transfer
   3. Real-Time Gross Settlement
   4. Internet Banking
   5. Mobile Banking
   6. Mobile Wallet
   7. QR Code Payment

Entities under the two classifications can be operating as a;

1. Payment System Operator (PSO) – As defined in the NPS Act, this means any entity licensed by the RBV to operate a Payment System. The Reserve Bank of Vanuatu is the main Payment System Operator as it operates the National Payment System of Vanuatu, VANKLIA System.

2. Payment Service Provider (PSP) - A payment service provider is a licensed entity or a person by the RBV that offers services that enable;

• Cash deposits and withdrawals
• Execution of payment transactions
• Issuing or procurement of payment instruments
• Remittance / Cross-border transaction services
• Other services functional to the transfer of money

In Vanuatu, these are the current payments instruments that individuals and businesses use daily;

1. Cash
2. Cheques
3. Credit / Debit Card
4. ATMs
5. Electronic Payment
   1. Online Banking
   2. Mobile Banking
   3. Mobile Wallet
   4. Cross-Border Remittance Services