What are the biggest problems with today’s payment systems?

There are so many issues with payment systems, but they arise not so because of being entities themselves, but arise when you juxtapose these payment system in the global scheme of things. So from a global perspective, some issues are:

• KYC data for the beneficiary side
• KYC data validation services for the developing world or in countries where established or open credit check and/or validation checks are not openly available as in the West
• Quoted FX rates to be taken into account for specific payment transactions (still quite a manual process)
• Correlating AML activities using sensors within the payment system
• Monopolistic networks for value transfers across borders
• Monopolistic mobile networks and channels for mobile-to-mobile transactions
• Least-Distance Routing
• Least-Cost Routing
• Being ability to directly peer and settle with a financial network as opposed to going through a complex series of expensive switches. A globally adhered transaction framework and protocol for this would be required.
• Quick-Connect (One-time User) correspondent banking relationship to facilitate transfers from a trusted financial network to another trusted financial network
• Access to network for non VISA/MC/Amex cards who prefer to operate on a flat-fee model
• Micro-transactions
• Validation and Capture methods (vary differently across various payment system)
• Reversals of transactions, especially when cross-border and currency conversions have been done
• Real-time Title Fetch
• Funds authorization and blocking for non-cards based transactions
• More efficient and near real-time settlement methods on both the Sender/Payee side and the Bank-to-Bank settlements
• More transparent pricing
• More simplified understanding of the legal and regulatory framework of each payment system (by a universal code).