Cross-border payments as a key opportunity for domestic schemes
Abstract
The interconnection of domestic payment schemes is emerging as a pragmatic ‘next rail’ for cheaper, faster, always-on cross-border payments, particularly in Europe. Rather than replacing existing payment infrastructures and standards, it builds on them, giving domestic schemes a new strategic role by positioning them as gateways into cross-border payment flows across card, instant payment and other digital rails. This paper looks at the pressures for change, the interconnection models that are being explored, and sets out two case studies, one in Europe and one in Africa, drawing on practical experiences in cross-border acceptance and scheme interoperability. The authors suggest that the interconnection of domestic schemes can bring not only cost-effective solutions but enhanced regional resilience at a time of global uncertainty. This article is also included in the Business & Management Collection which can be accessed at http://hstalks.com/business.
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Author's Biography
David G.W. Birch is an author, adviser and commentator on digital financial services. An international keynote speaker and a recognised thought leader in digital identity and digital money, he holds a number of board and advisory roles across these fields. A Forbes contributor for many years, he has written for publications ranging from Wired magazine and the Financial Times to Financial World and the Guardian.
Arnaud Crouzet is Vice President, Business Consulting at Consult Hyperion, Fime Group. He works with payment schemes, central banks, banks and other industry participants on the evolution of domestic and cross-border payment systems. His expertise spans cards, instant payments, wallets, interoperability and scheme acceptance, with a particular interest in the practical and strategic challenges of cross-border acceptance and payment system interconnection.
