A review of payments interoperability in the Southern African Development Community region

Abstract

Payments interoperability is a concept that is widely misunderstood, or at the very least, considered in a very narrow sense. The authors hope to provide an extensive explanation of the concept and to highlight the conditions necessary to achieve interoperability as well as the pervasiveness in the SADC Region. The authors will present a vision for payments interoperability in SADC based on a five-tier model that encompasses socio-economic, technical and regulatory issues. The envisaged benefits to the region are described in some detail, and readers will get a sense of some of the current developments that form the basis for the future payments regime of SADC. The proliferation of electronic payments in order to achieve cash displacement is deemed possible only with an effective cross border, multi-currency interoperable payments environment. The authors wish to promote awareness; debate and action that will ultimately see an efficient payments system contribute to the growth of the region and the uplift of the living standards of its residents.