Global engagement in scaling instant payments: insights, strategies, and trust building

Over the past four months, the Better Than Cash Alliance facilitated such an assembly through a series of peer exchanges. This global forum united the architects behind some of the world’s most dynamic digital payment platforms—systems that process billions of transactions monthly, such as India’s Unified Payments Interface (UPI) and Brazil’s swiftly evolving PIX.

© Better Than Cash Alliance

In this unique peer learning environment, central bankers from Pakistan, Bangladesh, Jordan, Ghana, Indonesia, and the Philippines presented vivid case studies from their own rapidly developing instant payment architectures, offering insights as rich as they are impactful.

Learning from Success Stories

The series kicked off with presentations from sector leaders in Jordan, Pakistan, the Philippines, and Bangladesh. Representatives from the Jordan Payments and Clearing Company (JoPACC), the State Bank of Pakistan (SBP), Bangko Sentral ng Pilipinas (BSP), and Bangladesh Bank detailed their strides in digital payment advancements.

For instance, in Jordan, strategic partnerships and digital system enhancements between JoPACC and various stakeholders, including banks and fintech companies, have led to significant advancements in digital payment infrastructure. According to JoPACC’s 2023 payment systems report, these partnerships enabled innovations in the Instant Payment System “CliQ” and the Mobile Payment Switch “JoMoPay.” As a result, Jordan experienced a 327.6% increase in transaction volumes and a 279.4% rise in transaction value within the year.

Pakistan’s RAAST initiative was highlighted for its role in reducing digital transaction costs, emphasizing the importance of interoperability for widespread adoption. This initiative is particularly significant given the potential economic impact outlined in the Alliance’s report - Realizing the Promise of Responsible Digital Payments for Merchants in Pakistan. According to the report, national adoption of digital payments by 2025 could boost the country’s GDP by 7 percent, generate 4 million jobs, and realize an additional US$263 billion in deposits. RAAST’s focus on making digital transactions more affordable and accessible is a crucial step toward unlocking these substantial economic benefits.

These sessions went beyond just discussions; they brought together leaders who are actively shaping the future of digital payments worldwide. Innovation was more than just a talking point—it was shared, experienced, and put into action across different regions, aiming to create a future where digital transactions are not only efficient but also inclusive and trusted.

Strategizing for Broader Adoption

A focal point of the discussions was scaling up and refining instant payment systems to better serve diverse populations. Experiences from Brazil’s PIX and India’s UPI systems suggest that they have significantly improved payment efficiency, especially for micro and small merchants.

First, you must keep in mind that fast payment is a public policy. You do not enter the regulator or any public body into the business of payments to compete with other private schemes, but to put pressure on the competition and enhance financial inclusion,“ remarked Dr. Angelo Duarte, Head of Department of Competition and Financial Market Structure at the Central Bank of Brazil, emphasizing the broader purpose behind implementing fast payment systems like PIX.

Echoing this sentiment, Ritesh Shukla, CEO of NPCI International Payments Limited, added, "We are continuously adding innovative use cases on UPI, such as enabling investments into equity markets and mutual funds directly through the app. Recently, we launched ‘Credit on UPI’, a feature that allows small and medium-sized businesses to access microfinancing by leveraging their transaction data. Our focus remains on displacing cash, and we are very excited about the vast possibilities that these new features bring to the market. Our ambition is to keep driving continuous growth in UPI by attracting more consumers and expanding the range of use cases.”

These examples of strategic innovation and commitment to public policy resonated deeply with participants from other regions. Inspired by the Brazilian and Indian models, one participant from Africa noted, “The strategies discussed here will certainly help us refine our approach to scaling up digital payments in our own markets.”

Building Trust in Digital Ecosystems

The final session of the series focused on a critical aspect of digital payments: building trust. Participants explored innovative fraud detection techniques, the importance of clear grievance mechanisms, and the vital role of consumer education in preventing scams.

As governments and central bankers increasingly turn to technology, such as Artificial Intelligence, to manage the complexities of digital payments, they face the challenge of balancing innovation with the need to maintain public trust. In the Philippines, for example, the Bangko Sentral ng Pilipinas (BSP) had to rapidly deploy a solution during the pandemic to meet rising consumer demands.

“We fast-tracked the launch of our AI-powered chatbot, BOB, during the pandemic. It quickly became our first point of contact for consumers and significantly improved our efficiency in handling complaints” explained Rochelle D. Tomas, Director of Consumer Protection at BSP. She added, “we can say that there are more women who are using BOB as a complaints channel than men. In fact, last year, we had about 57% of the 43,000 were complaints that were initiated by women”. This trend underscores the growing need for gender-inclusive financial services, which have been recognized as critical in our recent discussions on financial equality.

Similarly, in Indonesia, the OJK responded to new regulatory demands by enhancing its consumer protection tools. Rosnita Wirdiyanti, Deputy Director at OJK Indonesia, described how they adapted: “We enhanced our Ikatan Psikolog Klinis (IPK) Indonesia portal to meet new regulations, allowing consumers to lodge complaints securely across multiple channels, ensuring a balance between tech advancements and strong consumer protection.”

In Malaysia, the fight against fraud is part of a larger, coordinated effort. Azleena Idris, Senior Director at Payments Network Malaysia, emphasized the collective approach: “The National Fraud Portal is part of a nationwide strategy against fraud, integrating tech, data, AI, and policy to improve fund tracing and fraud detection.”

Continuing the Journey

The three-part “Scaling Responsible Instant Payments” peer exchange series successfully brought together members at different stages of their digital payment journeys, facilitating dialogues between those who have advanced further and those still navigating the challenges. Through shared experiences and solutions, participants were able to gain practical insights and guidance, aligning with the Alliance’s strategy of fostering peer learning. This collaborative exchange not only strengthened knowledge but also paved the way for more scalable, inclusive, responsible, and secure digital payments ecosystem worldwide.