The global payments paradigm is changing. Worldwide, the dominant international card schemes battle against ever-increasing fraud, exposing their underwhelming response to the emergence of card-not-present transactions. In the developing world, banks are looking to mobile technologies to capture payments by the unbanked and remove reliance on cash. And in the first world, disruptors are carving out pieces of the market to capitalise on new technologies and widening gaps in niche market payment scenarios, particularly for e-commerce and m-commerce.
In this white paper, we discuss how a new payments scheme can assist central banks to regain control of their domestic payments, draw the unbanked into the financial system, promote a “cash-lite” economy, combat financial fraud, and reduce the cost of payments for consumers, merchants and banks without eroding margins in the payments industry.