The paper "Policy Options in Monitoring Solvency" is a great example of micro and macroeconomic coursework. Advancement in technology has improved even in developing countries hence there is a need to change, adopt technology, and make optimum use of the same. Simplification for payment of goods and services has taken place through the introduction of technological changes and innovations. The statistics from the world payment report 2013 indicate that there is a worldwide rise in the volume of non-cash payments by a total of 7% in 2009 to over 260 billion in the year 2013.
A study by Abor (2010) pointed out that before the introduction of electronic payments in most countries, customers had their banks to perform all transaction and with long queues payments through the banks became a problem in as much as it has been realized that the liquidity and capital solvency problems were monitored through central banks. Heek (2011) in his study described information development in countries like Kenya and Ghana as questionable and coupled with different challenges when it comes to electronic payments. The environment of payments normally consists of institutional infrastructure and processes that exist in a particular society for initiating and transferring monetary claims in the form of commercial and central bank liability (EU Commission, 2006).
The setting includes payments instrument, the network arrangement, institutional players, and market convention, legal and regulatory framework. In rapidly developing countries like Ghana, the central bank plays a regulatory role in the payment business. At the same time, there are firms that develop, rollout and provide the needed infrastructure for electronic payment systems (SST, 2014). The organizations that adopt the payment systems are the consuming firms in the transaction business while serving as intermediaries between the service providers and the public as a whole who uses the payment system like mobile phones. The recent introduction of mobile money payment in fast-growing economies like Kenya, Ghana, and India has eased the trouble of sending money domestically (SST, 2014).
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