How can payment service providers harmonize payment system standards?

Harmonizing payment system standards across payment service providers (PSPs). 1. International standards and best practices: Payment service providers can align their payment system standards with internationally recognized standards and best practices. Organizations such as the International Organization for Standardization (ISO). 2. Regulatory framework and collaboration: Governments and regulators play a key role in harmonizing payment system standards. They can establish regulations, policies, and frameworks. 3. Open APIs and interoperability: The introduction of open application programming interfaces (APIs) and the promotion of interoperability between payment systems are essential for harmonization.

Standardization is most crucial to establish a stable supply chain. In terms of payment systems, this means that those regions that are still cut off of the global payment system can be included. The term "inclusion" is therefore one of the most important reasons to establish a country wide digital currency. Hence, standardization helps to increase pace, but with a stable and secure process to provide payment technology to those areas that have not yet been part of the global trade.

Harmonizing payment system standards among service providers is pivotal for seamless transactions. Begin by establishing a consortium or industry forum where providers can collaborate on standardization efforts. Encourage open dialogue to understand diverse perspectives and align on common objectives. Develop a unified framework that incorporates international standards and addresses specific industry needs. Facilitate ongoing communication channels to adapt standards to evolving technologies and market demands. Conduct regular audits and assessments to ensure compliance across providers. Foster a culture of continuous improvement, where feedback and insights contribute to refining and optimizing standards.

What makes my profession interesting is the variety of different regions and different markets. However, I see also that many governments are leaning towards international standards. This is a great movement and will help the global trade community to establish businesses and export both resources, technologies and cultural pride which, as a potential result, may increase tourism. The barriers to the standardization of payment systems from my personal point of view are inefficient habits of trade that allow opportunities of mistrust. However, it is well noted that international standards help to demolish those olde routines.

With an increasing global market, payment security is a priority for payment standardization. This can be achieved by various technologies as for example smart cards. Cards can use biometric technology to authenticate payments. Another initiative of standardization is also to facilitate or creating an easy payment process. For example by tokens used to pay for subscriptions, monthly passes in order to have simply more options than banknotes or credit cards to pay.

The Central Banks play the most crucial role in this regard. The Central Banks are obliged to approve safe and secure options of payments from banknotes to credit cards, tokens and digital currencies. The Central Banks are responsible to analyze the country's requirement and "readiness" for a responsible behavior with monetary assests. This can only be ruled by the Central Bank and the government of the individual country. Only the Central Bank has the opportunity to meet international experts and/or other countries to see if an international standard could be applied to the certain country. Best practices are therefore first and foremost the communication and interaction with international communities, service providers and manufacturers.

The most important principle towards a global payment standardization is the mindset of the Central Bank and the analysis on how an international payment standard can be applied. Thanks to a very active international community that meets regularly at summits and trade fairs, every country has access to achieve payment standards.