Dynamism in payments but cross-border developments lagging

THERE has rarely been such a dynamic and innovative time for the payments industry. The advent of novel technologies has galvanised efforts to improve the speed and security of payments, as well as to bring down costs and broaden access to financial services.

Progress in domestic payments has been rapid, with cheap and quick digital payments solutions already widely available, including in emerging markets where mobile payments solutions have gained impressive traction. Progress in cross-border payments has been less impressive, however, and persistent problems weigh heavier for those in emerging markets, with higher costs disproportionately falling on those least able to bear them.

The problems of connecting different domestic payments environments, many of which have widely varying architecture, are incredibly complex and there is a variety of solutions being explored. The Committee on Payments and Market Infrastructures has done an excellent job in defining the problems and laying out responses.