Postal financial services.
One area set to benefit from deeper engagement with WPSPs is postal financial services. In Riyadh, several proposals were adopted in this area, with a focus on ambitious modernization and interconnection with wider postal financial service players (WPFSPs). Proposals passed will bring about changes to postal financial services on two fronts. First, they will usher in improvements to the UPU’s legal framework for postal payments, known as the Postal Payments Services Agreement (PPSA). These changes are directed at increasing the interoperability of the postal payments network, including the establishment of conditions for interconnection with WPSPs; prevention of money laundering, terrorist financing and financial crime; PPS*Clearing; remuneration and the global adoption of a trusted trademark, PosTransfer. The resolution also lays the groundwork for further broader changes to the UPU’s legal frameworks associated with postal payments and other postal financial services to identify opportunities related to diversification, the removal of outdated elements and the adoption of a more flexible approach to defining products and services, technologies, channels, and interoperability rules. This again includes rules for further engagement with WPFSPs. To promote the continued evolution of postal financial services worldwide, member countries have also agreed to start work towards establishing an advisory knowledge centre, subject to extrabudgetary funding. Prannoy Sharma, Deputy Director General (International Relations and Global Business), Department of Posts, Ministry of Communications, India, and co-chair of the UPU Congress topic on postal financial services, believes that a new knowledge centre for postal financial services will be especially beneficial for developing countries. “The knowledge centre will provide member countries with best practices, knowledge sharing, technical assistance, help with financial literacy, information on regulatory frameworks, and promote financial inclusion and gender equality,” he said. “Once we secure extra funding and develop the centre, it will become a vital resource for postal financial services.” Speaking about the postal financial services proposals adopted in Riyadh in general, Sharma’s co-chair, M’hamed EL Moussaoui, Managing Director, and member of the Executive Board of Al Barid Bank, Poste Maroc, added: “Regarding the future of financial services, we have taken a significant step forward during this Congress with the adoption of these reforms.
A second part of the postal financial services reforms will be presented at the Dubai Universal Postal Congress in 2025.
