What major problems in payments technology remain unsolved?
1 Answer
Faisal Khan
Answered 06/Mar/2021
Interoperability in Payments.
We currently have an amazing level of interoperability in our communication networks, i.e. data exchange. Any two points on Earth can talk to each other directly because the standards and protocol for communication are essentially homogeneous and available for all.
The same cannot be said about banking, specifically payments. We have such a fractured or fragmented system for making payments to each other. With over 1,900+ payment networks around the world, less than 3% of them are directly connected to each other. If we include stored value systems (from small to large), we are then talking in excess of 10,000 systems in which case, most of them are island systems or networks, i.e. they are hardly connected.
I did a series of videos on this, which explains the concepts from a heuristic point of view. There might be a little shameless plug in a few videos. You can skip that.
The playlist is included in the description of the video below.