Payment Systems experts face a common problem. Do you know how to solve it?

1 The problem: interoperability

Interoperability is the ability of different payment systems to work together seamlessly and efficiently, without compromising security, speed, or convenience. Interoperability is essential for facilitating cross-border payments, expanding financial inclusion, enabling innovation, and fostering competition. However, interoperability is also a complex and multifaceted problem that requires coordination and collaboration among various stakeholders, such as payment service providers, regulators, standard-setters, infrastructure providers, and end-users.

2 The solution: the four dimensions framework

The Committee on Payments and Market Infrastructures (CPMI) and the World Bank Group have developed a four dimensions framework to help tackle the problem of interoperability. This framework helps you analyze and address the key aspects of interoperability, such as the hardware, software, protocols, and formats that enable the exchange and processing of payment messages and data; the products, services, fees, and contractual agreements that define the roles, responsibilities, and incentives of the participants in a payment system; the laws, regulations, rules, and standards that govern the rights and obligations of parties involved in a payment system; as well as the structures, processes, and mechanisms that facilitate decision-making, coordination, and oversight of a payment system.

3 The benefits: improved performance and resilience

By utilizing the four dimensions framework, you can identify the gaps, barriers, and opportunities for enhancing interoperability across different payment systems. You can prioritize the actions and interventions that can have the most impact and value for your specific context and objectives. By improving interoperability, you can gain several advantages, such as lower costs and risks, greater efficiency and speed, more choice and innovation, as well as enhanced security and trust. This can reduce the need for intermediaries, manual processes, and multiple interfaces, which can lower operational costs and risks. It can also enable faster and smoother payment flows to improve user experience and satisfaction. Moreover, it can foster competition and diversity among payment service providers to increase the choice and quality of payment options for end-users. Additionally, it can strengthen the security and reliability of payment systems to enhance the trust of end-users and regulators.

5 The skills: analytical and interpersonal

In order to successfully apply the four dimensions framework and address the coordination and collaboration challenges, it is important to develop and demonstrate certain key skills. These include analytical skills, such as collecting, analyzing, and interpreting data related to payment systems and interoperability; being able to identify problems, create solutions, and evaluate alternatives. Additionally, interpersonal skills are necessary for successful collaboration with different stakeholders, such as peers, customers, partners, regulators, and policymakers. This includes being able to communicate effectively, negotiate, manage conflicts, build trust, and influence decisions.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?