Exploring the economic viability, value proposition and potential framework for a cross-border payment interoperability network in ASEAN
The Global retail payments market is a highly prized one with both new and established Payment Service Providers (PSP) working to emerge as the most popular payment platform. In ASEAN, the payments sector is an integral part of banks' services and an open playing field brimming with innovation and competition. The competitive landscape is driven by adoption of multiple mobile and lifestyle consumer-centric platforms offered by banks and non-banks. However, the landscape remains complex and fragmented due to the existence of many competing standards, options, and closed loop eco-systems.
An ASEAN inter-governmental effort - aimed at unifying PSPs and consumer ecosystems, and driving seamless cross-border payments - will help drive economic integration and inclusion of much larger portions of the combined population in the payments market. The key to enabling this is an underlying interoperable cross borderpayment rail that is open, and also robust and secure.
Efforts at making this a reality are already underway with the Association of Banks in Singapore and the Thai Bankers’ Association embarking on a joint project to evaluate the feasibility of such a regional interoperable payment system across all ASEAN countries.
This report provides a summary of the main findings and includes the perspectives and feedback of stakeholder representatives interviewed in the second and third quarter of 2018. It also details the underlying assumptions and limitations of the model used for this study.
This report focuses on the economic viability of a cross- border interoperable payments network, its value proposition and a proposed framework for operational standardisation across ASEAN.