You’re starting a new job in payment systems. What do you need to know first?

If you are a newbie to Payments world : WELCOME :) and you can start with the below topics : - Types of payment methods like cards, QR etc - Payment systems available in market - International vs domestic payments - What is meant by clearing and settlement Once a person is clear on the basic concepts mentioned above , more details like payment messages, payment system of different countries can be explored.

Customer behavior ! How they want to do payments and what to experience it than go backwards towards technology. Different Use cases for Payments - Pick and choose --> Account to Account and P2P - basic workflow than understand country specific nuances how they are processed --> E commerce or Store Payments --> B2B Payments --> B2C Payments

For the newbie it can be an overwhelming start, lots to learn and lots that doesnt make sense. First thing to understand is that it will take time to learn. And seco d thing is that things will start to make sense the more you learn, so don't despair straight away. Depending on who you are going to work for there will be a different path you take to learn. Start with the basics and make a split between card based payments and others. The age old 4 corner card model is a good place to start. The following questions should be a good guide. 1 How are payments made 2 How does my company makes, takes and manages them? 3 ecosystems of different industries (airlines process payments differently to retail) 4 advanced topics (fraud,funding,report)

Um misto de humildade com a certeza de que, n?o importa o qu?o complexo ou tecnológico seja o meio de pagamento, o problema a ser resolvido é um só: uma pessoa física ou jurídica deseja pagar outra pessoa física ou jurídica por um produto ou servi?o. O mercado é repleto de profissionais que se apaixonam por uma ou outra tecnologia (EMV, Tokeniza??o, P2P, Blockchain, Stablecoins) e que, eventualmente, gastam mais tempo explicando os meios do que focando nos fins. Com humildade e escutando atentamente diversas fontes, você logo aprende o padr?o e, aos poucos, tudo come?a a fazer sentido. Bem-vindo ao mundo dos meios de pagamentos! ;)

1)Basics - The new joiner to payments domain has to be very clear on the workflow of different types of payments that the application supports. Need to gain theoretical knowledge like RTGS of different countries, Correspondent banking etc. Can make use of any available resources within the organization like handbooks, SOPs etc. 2)How the application connects with other applications like treasury tools, accounting systems, embargo filtering tools etc needs to be studied thoroughly. 3)E2E workflow of different types of payments that the application supports has to be mastered. The lifecycle of payment from start to end has to be studied. 4) Finally Swift messages - Both MT and MX format logics has to be understood.

In my experience one needs to understand the basics of printed money versus electronic money. If one have a clear understanding to how printed money works, it becomes easier for anyone to compare and understand the different genres where the involvement of electronic money exists. In any payments model there will be a creator/issuer and authorizer and finally one who is doing a clearing/settlement. It has to have involvement of a bank, an account, its type, its branch, its country and its related entitlements in a nutshell. Last but not the least there will be a initiator/sender and a receiver/benefactor , involvement of a regulatory authority and most importantly a security factor which makes any transaction safe.

One needs to understand the basic payments workflow and the infrastructure What are different types of payments: Domestic, Cross-border, Real time vs Net settlement etc? Which are the various players involved in payments eco system? What are different messages involved in Payment systems?

I've always found the quickest way to understand a payments scheme is to start with the value chain. The value chain view lays out the key system players and maps the business model (basic fees and revenues) for each stakeholder in the chain. Look at the payments flow from both directions, meaning the direction starting with the end user (payor) and the service provider (payee). Understanding that one player's interchange revenue is another's discount rate cost is essential. The long list of mouths to feed in electronic payment schemes all carry varying levels of risk, some with substantial regulatory obligations, all trying to differentiate with technology and operating efficiency based on their targeted transactions.

Les acteurs: émetteurs, acquéreurs, processeurs etc. sont cruciaux à travers leurs r?les et responsabilités. Par exemple, un facilitateur de paiement est en contrat avec les acquéreurs pour recruter les marchands et développer le réseau d'acceptation et de fait l'inclusion digitale et financière. Dans des contextes comme l'Afrique comprendre ces concepts est fondemental car c'est la clé pour une accélération du déploiement des réseaux.

The payments industry is under increasing demand due to the influx of new and emerging technologies. In a changing world influenced by external drivers and shifting consumer behavior, expectations of omni-commerce evolve at lightning speed. It becomes imperative that the service providers have the following attributes to be successful in the highly competitive environment: 1. The consumer journey has to be made simple, secure and fast. 2. Merchants should be handling all payment modes at their end. 3. Payment Service providers should constantly keep a close watch on the changing consumer behaviour and adopt technology to support the change. 4. Consumer dispute management has to efficient. 5. Merchant front end portal has to be evolving.

Staying current with payment system trends is crucial in any new position, especially within the financial sector. It involves a continuous learning process to understand and adapt to the latest technologies and methods. This could include: - Familiarisation: Getting to know the company's established payment processes. - Updates and Advancements: Keeping up with the latest developments in payment technology. - Industry Trends: Monitoring trends like mobile payments, digital wallets, and contactless transactions. 3rd parties you may incorporate are also important. - Adaptation: Being flexible to work with the company's specific payment systems or platforms. - Continuous Learning: Embracing new methods and technologies as they emerge. #ai

When it comes to payments trends there are 3 main areas: 1. Cost effective for the schemes and merchants (Profit increase) Look at RTP vs Card schemes, intelligent routing of payments 2. Making it easier to use (Revenue and conversion increase) Cross-Border RTP vs cash, Biometrics, wearables 3. Inclusion and easing access to the service (Revenue through population increase) What some wallets, digi-banks and retailers are doing in APAC. All of the above have to be balanced on top of KYC, AML and Security (this should come first in any payment system).

Contactless Payments: Increasing adoption due to safety concerns. Mobile Wallets: Popular for convenience and seamless transactions. Biometric Authentication: Enhancing security and ease of use. Cryptocurrency Payments: Growing acceptance as a form of transaction. Real-Time Payments: Instant transfers gaining traction. AI and Machine Learning: Improving fraud detection and personalization. Embedded Finance: Financial services integrated into non-financial platforms. Cross-Border Payments: Simplifying international transactions.

The payment landscape is changing and evolving pretty past. Make sure you keep up to date with trends, that pop up over the wohle industries, which providers offer them, what regulations there are and what data you can find. E.g. Buy Now Pay Later, mobile payment solutions and especially Omni-Channel solutions are in the focus bright now.

One payment system trend that doesn't get talked about a lot is fee structures. Depending on your industry you may have different experience with fee structures than other industries, however it's an important aspect of payment systems. In prepaid, we have seen the shift from fee structures that benefit a per card model, and shifted to active user models.

Depending on the are you'll be in Payments ecosystem you'll face their specifics: Technology - scalability and ability to react to market demands, Product/Marketing - emphasizing your USP etc. BUT there is one area that was always and is becoming a bigger concern - Security vs Innovation Speed. With the evolution of Gen-AI we will see an increase in their misuse in the payments space, but also their aid in fighting it.

The payment landscape is constantly evolving with new technologies like blockchain and real-time payments emerging rapidly. PSPs need to be adaptable and integrate these innovations while maintaining security and efficiency. The payment systems space is becoming increasingly crowded with new players entering the market. PSPs need to differentiate themselves and offer unique value propositions to attract and retain customers.

Security Concerns: Protecting against fraud and cyberattacks. Regulatory Compliance: Adhering to evolving standards. Fraud Prevention: Implementing effective measures. Legacy Systems: Modernizing outdated systems. Customer Experience: Enhancing convenience and personalization. Cross-Border Transactions: Overcoming regulatory and currency challenges. Payment Data Security: Safeguarding sensitive information. Interoperability: Ensuring seamless connectivity between systems.

In my experience it`s crucial to listen to the customers and their demands, also while looking at data. Even though some payment methods will maybe not sound too profitable, the customer might decide on your solution or not, depending on the availability of a solution that is fancy at the moment (e.g. ApplePay, GooglePay- it may seem just like credit card, but endcustomers like to see it in the checkout and use it). Anyhow on the other hand make sure there is a real business case behind it to cover the costs and check whether there`s regulations or complexities that you need to tackle to provide and if so, if it`s still suitable to offer.

In every scenario you must consider the biggest challenge facing payment systems, the end user. All decisions no matter where you reside in the chain flow downstream to the end user. Customer service and providing the best possible user experience should be the ultimate goal and focus.

In addition to other factors, it is important to understand the following, as you seek to manage a payment system: 1. Operating models of the payment system(s) - people, platforms, processes. 2. Roles of payment parties and requirements of scheme membership. 3. Regulation - understand licenses and certification, and local regulator requirements.

My first lesson in payments was very practical and had career expanding consequences….. The two parts that I learned at 18 were: 1: There is no Fairy Godmother in HR who is looking after your career - it’s down to you 2: When you are told ‘you can’t’ or ‘it’s not possible’ prove them wrong and achieve it I realised this as a grade 1 bank clerk and ended up CEO of the UK’s systemically important payment systems before moving on to advising central banks in other countries There are far more opportunities for amazing payment careers in 2024 then there were in 1985 - I had no secret sauce just belief and determination to achieve what my first managers said wasn’t possible

1. If you are part of the banking industry and your firm already having payments team, then it is easier to learn inhouse first before moving out. Find some connections and learn the inhouse product. 2. While external certifications can help in getting the basics of payments system, one can also attend webinars/tech-talks on payments system. 3. Plus collaborating with payment system enthusiast via LinkedIn , within your firm can also help.

Data privacy controls, AML and screening management. That is corner stone of customer identification, allowed to have the full picture of the sanction screening process

The ecosystem, end to end payment flow (single message/dual message) settlement and reconciliation and how the various players generate revenue.