Defining New Commerce Across Borders: Payments Interoperability and How It Benefits Local and Regional Economies

 

 

Key Highlights:

1.    Introduction and Context:

  • Focus on cross-border payments and their impact on local and regional economies.
  • Challenges include fragmented payment rails, lack of local currency settlements, and user experience issues.

 

2.    Innovations in Cross-Border Payments:

  • Development of real-time payment rails and QR code payment systems (e.g., Malaysia’s “DuitNow”).
  • Bilateral agreements for QR interoperability between countries (e.g., Malaysia-Singapore).
  • Future potential in biometrics, wearables, and tokenization to enhance user experiences.

 

3.    Customer and SME Perspectives:

  • Customers demand seamless, fee-free, and familiar payment experiences across borders.
  • SMEs face growing expectations for lower FX fees, faster settlements, and transparency in cross-border transactions.

 

4.    Collaboration in Payment Systems:

  • Public-private partnerships are essential for scaling national QR code schemes.
  • Cross-border governance challenges require supranational frameworks to handle fraud and disputes effectively.

 

5.    Sustainability and Inclusivity in Payments:

  • Digital literacy is crucial for ensuring inclusivity and mitigating fraud risks.
  • Economic viability is essential for sustaining innovation in payment systems.
  • SMEs, the backbone of the economy, need tailored digital tools for equitable participation.

 

6.    Risks and Future Opportunities:

  • Expanding surface area of risks, including digital fraud and deep fakes, require advanced detection and regulatory frameworks.
  • Sustainable solutions must prioritise openness, interoperability, and tailored support for MSMEs.
  • Balancing tourism and local community needs is a growing challenge in payment ecosystems.

 

Conclusion:

As digital payment adoption grows, stakeholders must address risks, ensure sustainability, and focus on creating user-centric solutions that benefit both customers and businesses.

 

Speakers:

  • Akihiko Sato, Deputy Division Head, Finance Business Strategy Division, Finance Business Group, PayPay Corporation
  • Doug Feagin, President, Ant International
  • Dr Pipatpong Poshyanonda, President, Kasikornbank
  • Zubin Rada Krishnan, Chief Executive Officer, BigPay

 

Moderator:

  • Seo Young Lee, Partner & Head of Southeast Asia, Oliver Wyman
 
 

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