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.
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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