Looking At Payments Through A Different Lens

Delighted this week to have a special guest writer Srini Chandrasekharan VP Open Banking at Mastercard with his thoughts on the Payments eco-system - thank you Srini.

People often ask me how a software engineer building telescopes found his passion solving critical challenges within payments. From Commercial Payments to now working in one of the most interesting areas for payments, Open Banking, I often find myself going back to the principles of Systems Engineering.

Telescopes and payments may seem like vastly different concepts—one belonging to the realm of astronomy and the other to finance. However, they share surprising parallels when viewed through the lens of systems engineering principles such as functionality, modularity, integration, and scalability.

Purpose and Functionality

Systems engineering emphasizes that every component in a system should contribute to its overarching purpose. Telescopes and payment systems both serve as instruments that enhance connectivity and visibility. A telescope acts as an observation system, bridging the gap between Earth and the cosmos, making distant celestial objects visible and bringing the mysteries of space closer to human comprehension. Similarly, payment systems are transaction systems that link consumers and businesses, facilitating the seamless exchange of goods and services. Both systems are designed with a clear purpose and a set of interrelated components that achieve functionality—whether it’s focusing light to create images or processing data to complete transactions.

Modularity and Integration

Modern telescopes and payment systems are built with modularity in mind, allowing for flexible and adaptive design. A telescope consists of several modular components such as lenses, mirrors, and sensors that can be upgraded independently to enhance performance. Similarly, payment systems have various modular components, including payment gateways, fraud detection mechanisms, and transaction processors, that can be integrated or modified based on the specific needs of businesses and consumers. Systems engineering emphasizes the importance of integration between these modules, ensuring that each part works cohesively without disrupting overall functionality. Just as a telescope’s optical system must align with its electronic controls, a payment system’s security protocols must synchronize with transaction processing to ensure a seamless experience.

Scalability and Performance Optimization

Both telescopes and payment systems demonstrate the principle of scalability—another key tenet of systems engineering. Telescopes have evolved from simple refractors to massive space telescopes like the Hubble and James Webb, each iteration designed to handle more complex observational requirements. This scalability ensures that the system remains viable as the demand for better resolution and deeper space exploration grows. Similarly, payment systems have scaled from simple cash transactions to complex digital systems that support millions of transactions per second globally. Cloud-based payment architectures and decentralized blockchain technologies are built to scale without compromising performance or security.

Reliability and Risk Management

Systems engineering also involves ensuring reliability and managing risks. Telescopes must overcome limitations such as atmospheric distortion and light pollution through adaptive optics or space-based deployment. Payment systems face risks such as fraud and data breaches, which are mitigated through encryption and multi-factor authentication. Both systems employ redundancies and error-correction strategies to maintain operational integrity under adverse conditions, ensuring reliability even when faced with external disruptions.

In summary, telescopes and payment systems, though different in nature, share a common narrative of being complex, modular systems designed for connectivity, scalability, and optimal performance. Their evolutionary paths reflect core systems engineering principles, highlighting a shared drive for innovation that enhances human capabilities—whether extending our sight into the stars or our reach into global commerce.

Have some more parallels that I may have missed? Comment/Share/Repost with your thoughts! Would love to hear from you!

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