This report focuses on payment system oversight and the interoperability of payment systems as an increasingly emerging feature of retail payments. The report describes the foundations of payment system oversight and considers how oversight policy should apply to interoperability in retail payment systems. Building on existing international standards for financial market infrastructures, the report elaborates policy principles for public authorities, payment system operators, and payment service providers to ensure that the risks associated with interoperability are managed effectively. Important in this context is the cooperation between relevant authorities, both domestically and internationally, and their effort to cooperate effectively not just in normal circumstances, but, especially, during crisis situations.
The scope of the principles provided in this report extends to several aspects of payment system oversight and interoperability. Besides an opening principle covering the general area of risk identification, monitoring, and management, the other principles are specifically designed to address legal, operational, and financial aspects of interoperability, as well as issues relating to their governance, access, efficiency, and effectiveness. The principles build on international best practices. They assume that the responsibility for managing the risks associated with interoperability lies first and foremost with the operators of and the participants in interoperability.
The author of this Technical Report is Biagio Bossone, International Financial Consultant. Contributions were received from the members of the FG DFS Interoperability Working Group, and, in specific, from Daniel Gersten Reiss, Lara Gidvani, Yury Grin, Realeboha Lekhanya, and Thomas Lammer. The Technical Report was reviewed by the ITU Focus Group Digital Financial Services. Thomas Lammer provided the overall guidance for this project.