What are the most effective ways to develop a deep understanding of payment systems and services?

I’ve been in payments for nearly 35 years and I always come back to a few key resources when I need to learn about a new payments offering, issue or regulation. First, I draw a picture of how the information and money flows, then I seek out information about pricing and who pays whom for what. Lastly, I look at the network/scheme rules and what they are mandating regarding the particular transaction type. Even if that doesn’t give me the answers, it provides a structure to ask further questions of those involved in the offering, etc. If you can understand the parties involved, who stands to profit, who is responsible for securing the transaction and taking the risk, you will be well informed about the impact/potential of a new approach.

I feel that one of the most fundamental things that one should learn in the payments industry is a basic 3 and 4 party model (scheme). Once this understanding is there, many questions will get answered on its own. Many people in the industry lack this basic knowledge, hence a lot of confusion on terminology and roles and responsibilities of each market participant.

Looking at the flow of money and the players at each step of the process/ value chain, how each of those players make money/ add value: bank issuing payment on behalf of a business/consumer to another business/ consumer, bank or provider accepting the payment on behalf of the business/ consumer, rails (card networks, ACH, FedNow, remittance providers like Wise), terminal/ technology providers. Payments could be Business to Business (supplier payments, paying for services), Business to Consumer(reward, refund), Consumer to Business (purchasing goods or services), Business to Business to consumer (point-of-sale lending). They could also be made using many different form factors: card, mobile, wearables, biometric, paper cheques, cash (yes!)

Understanding the 4 party model and the key players is an absolute must. How and why are these business making money and their role across the ecosystem. Education never stops in payments as innovation never stops.

Consider the user perspective. How you make payments now is different than yesterday and will be different tomorrow because users continue to demand new features. Every time you make a payment, think about how it can be made better. And ask everyday users about their needs and pain points.

Peers and social groups are one of the places to get honest feedback regarding providers and systems. Even reaching out to your LMS, DMS and Web platform for some advice can be extremely helpful.

Taking courses and reading material is a great way to gain practical knowledge, but working with and learning from experts in the industry is a great way to gain insights and hands-on understanding.

To enhance your knowledge and expand your professional network in the payment systems and services sector, attending industry conferences, seminars, and networking events can be very beneficial. These events offer opportunities to connect with experts and professionals, participate in workshops and discussions, and seek mentorship to gain valuable insights. Therefore, it is recommended that you engage in such events to keep yourself updated with the latest trends and developments in the industry and to connect with like-minded individuals.

In my experience, being hands on and deep diving into technical problems has been the key enabler. Really knowing how different parts of the payment process work and how it is an intricate web of consumer - processing - risk is the key to developing knowledge in the domain.

Stay updated with the latest industry research, publications, and whitepapers related to payment systems and services. Subscribe to reputable financial journals, attend industry conferences, and participate in webinars and workshops to stay abreast of the latest trends and developments in the field.

Build a strong professional network within the payment industry by connecting with industry professionals, experts, and thought leaders. Engage in networking events, forums, and online communities to exchange knowledge, share experiences, and learn from the experiences of others in the field.

One thing I found helpful is to develop deep relationships with the peers from the industry. Ideally, you need people from different types of players like acquirers, issuers, processors, schemes, POS-software/hardware vendors, loyalty firms etc. The best way to learn is to ask them meaningful and technical questions. Once you understand a technical side of what all of them do, this knowledge is extremely powerful and rare

So much feedback and content can be found by following the right people on LinkedIn - asking small questions in the DM's can sometimes be daunting because you think you're going to be sold to. We're not all like that.

To stay informed and up-to-date with the latest research, white papers, and publications related to payment systems and services, it's advisable to follow industry-leading publications, academic journals, and reputable websites that provide insights into market trends, regulatory changes, and technological advancements in the field of financial technology. This will help you stay ahead of the curve and keep you informed about the latest developments in the industry.

Commit to continuous learning and professional development by regularly attending training programs, workshops, and seminars focused on payment systems and financial services. Take advantage of online courses, webinars, and e-learning platforms to expand your knowledge and skills in this rapidly evolving field.

Undertake hands-on projects or case studies related to payment systems and services to apply theoretical knowledge to practical scenarios. Work on real-world projects, research assignments, or problem-solving exercises to gain a deeper understanding of the complexities and challenges associated with payment technologies and processes.

Local payment solutions can also offer a new perspective. By examining local payment solutions, you can broaden your understanding of the diverse challenges and opportunities present in different markets. This knowledge can be instrumental in developing innovative and targeted payment solutions that meet the specific needs of certain customers and contribute to the overall growth and development of the payment industry. Explore emerging technologies. Keep an eye on emerging technologies such as blockchain, cryptocurrencies, and mobile payment solutions. Understanding how these technologies impact the payment industry can provide valuable insights into the future of payment systems and services.