What are the roles and responsibilities of different stakeholders in payment system interoperability?

1 Payment service providers

Payment service providers (PSPs) are entities that offer payment services to customers, such as banks, mobile money operators, fintech companies, and card networks. They play a major role in the payment system by enabling the initiation and execution of payment transactions. PSPs must adhere to technical, operational, and regulatory standards for interoperability, such as using common protocols, interfaces, and security measures. Additionally, they must participate in the governance and decision-making processes for interoperability by joining industry associations or committees. To support interoperability, PSPs must invest in their infrastructure and systems as well as train their staff and agents. Furthermore, they should promote the awareness and adoption of interoperable payment services among their customers by offering incentives or educational programs.

2 Payment system operators

Payment system operators (PSOs) are the backbone of the payment system, as they provide the infrastructure and services that enable the clearing and settlement of payment transactions among PSPs. Their roles and responsibilities in interoperability include establishing rules, procedures, and standards for PSPs to access the PSO's services, developing and maintaining technical and operational capabilities for PSPs to connect to the PSO's platform, monitoring and supervising the performance of PSPs to ensure quality, security, and integrity of payment transactions and data, as well as innovating and enhancing the functionality of interoperable payment services.

3 Payment system regulators

Payment system regulators (PSRs) are responsible for overseeing and regulating the payment system and its participants, such as central banks and financial regulators. As the guardians of the payment system, PSRs ensure its stability, soundness, and fairness. Their roles and responsibilities in interoperability include setting and enforcing legal frameworks, facilitating coordination among stakeholders, balancing risks and opportunities of interoperability, and advocating public policy goals. This may involve issuing laws or directives, creating forums for dialogue and consensus, assessing impacts on financial inclusion or consumer protection, and promoting alignment with national strategies.

4 Payment system customers

Payment system customers, such as individuals, businesses, governments, or non-governmental organizations are the end-users of payment services. They benefit from payment systems as they use payment services to meet their financial needs and goals. As payment service customers, they have roles and responsibilities in interoperability. This includes selecting PSPs, products, or channels that offer convenience, affordability, security, and value. Furthermore, they should provide feedback and input to PSPs, PSOs, PSRs, and other stakeholders on their expectations and experiences of interoperable payment services. Additionally, it is important for them to protect their rights and interests by being aware of the terms and conditions, fees, risks, and benefits of interoperable payment services. Lastly, they should contribute to the development and growth of the payment system ecosystem by adopting and promoting interoperable payment services among their peers.

5 Payment system enablers

Payment system enablers are entities that provide complementary or supplementary services or functions that support or facilitate the interoperability of payment systems, such as technology providers, consultants, researchers, or development partners. These catalysts bring expertise, innovation, resources, and perspectives that can help improve the interoperability of payment systems. Their roles and responsibilities may include offering solutions and services to enhance the technical, operational, or business aspects of interoperability. They may also provide advice and guidance to address the strategic, regulatory, or organizational challenges and opportunities of interoperability. In addition, they can partner and collaborate with PSPs and other stakeholders to advance the interoperability agenda. Finally, they can advocate for and raise awareness of the importance and potential of interoperability.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?