Volume 19 (2025)

The increasing integration of artificial intelligence (AI) into cyber-security solutions offers transformative potential for threat detection and mitigation. However, the widespread adoption of such systems raises crucial questions related to trust, particularly given their inherent complexity and potential opacity. This paper explores the nexus between trust and AI-based security solutions, analysing conceptual, methodological and ethical—legal challenges. Through an interdisciplinary review and an in-depth analysis of the relevant literature and European Union legislation, including the General Data Protection Regulation (GDPR, Regulation (EU) 2016/679), the proposed Artificial Intelligence Act (AI Act, COM(2021) 206 final), the Payment Services Directives; including the second Payment Services Directive (PSD2, Directive (EU) 2015/2366) and the proposed third Payment Services Directive (PSD3, 2023), the proposed Payment Services Regulation (PSR, 2023), the Digital Operational Resilience Act (DORA, Regulation (EU) 2022/2554), and the Digital Markets Act (DMA, Regulation (EU) 2022/1925), alongside emerging regulatory concepts like TIBER-EU (Threat Intelligence- Based Ethical Red Teaming, 2018) and the Anti-Money Laundering Authority (AMLA, legislative package proposed in 2024), framework, the requirements and implications for the design, development and implementation of reliable and compliant AI-based security systems are identified. The PSR is crucial as it sets out security requirements (eg strong customer authentication), defines fraud liability rules (an area evolving with new regulations), and promotes innovation (eg open banking). The DMA, while not directly regulating AI, potentially reshapes the competitive environment in the payments industry by imposing greater openness and transparency for gatekeepers, indirectly influencing the development and application of AI in this space. This research argues that while existing regulations provide a foundation, the rapid evolution of AI, particularly generative AI and agentic AI, introduces new complexities that necessitate a more proactive and integrated governance approach to sustain user trust and operational resilience. The paper provides a strategic conceptual framework for addressing these evolving trust challenges and proposes future directions for research and practice in the field of AI-enhanced cyber security and payments. This article is also included in the Business & Management Collection which can be accessed at http://hstalks/business.
Keywords: artificial intelligence; cyber security; trust; transparency; algorithmic bias; accountability; EU legislation; GDPR; AI Act; DORA; TIBER-EU; AMLA

China’s digital yuan (e-CNY) is developing into a central bank digital currency with the capacity to transform inter-regional payment mechanisms as well as settlement processes. This study presents a three-tier strategic framework, emphasising e-CNY’s potential to streamline payments, reduce reliance on the US dollar and promote effective participation in transnational trade systems. This framework, covering technical infrastructure, regulatory governance and market alignment, is validated by the China–UAE trade case and the mBridge pilot project. Research indicates that while e-CNY adoption has gained noteworthy prominence in Chinese regional trade networks, its acceptance at the global level remains challenging due to rising operational and regulatory concerns. The findings outline that e-CNY demonstrates strong capabilities in cost reduction and real-time settlement, yet it is facing challenges related to transparency, privacy safeguards and differences in transnational governance frameworks. The study offers practical implications for policymakers and regulatory authorities in comprehending the digital currency-enabled international trade finance structures. The proposed policy-oriented framework guides the effective integration of future digital currencies in transnational trade practices. The outcomes suggest that regulatory harmonisation and bilateral coordination on CBDC interoperability are crucial for simplifying e-CNY’s trade compliance. This article is also included in the Business & Management Collection which can be accessed at http://hstalks/business.
Keywords: e-CNY; transnational trade settlements; interoperability; digital currency architecture; international trade finance; regulatory cooperation

This paper outlines a systemic approach to combating payment transaction fraud. Fraud is a significant societal problem that can be understood as a complex system. Interventions within such systems can be categorised as S-frame (system change) or I-frame (individual or behavioural change). The paper argues that both forms of intervention are necessary, supported by strong feedback loops between the two. Three case studies are presented. First, the S-frame intervention of daily payment limits is examined, with a focus on its impact on bank impersonation fraud. Secondly, the S-frame intervention of payee verification is discussed, including results from its early implementation in the Dutch market in 2017. Finally, I-frame interventions through targeted awareness campaigns are illustrated using the example of the ‘TikTok job scam’. The paper concludes with the following recommendations: (1) regulators should enable payment service providers (PSPs) to apply robust S-frame interventions; (2) PSPs should adopt a systemic perspective, integrating S-frame and I-frame approaches; and (3) system actors should be permitted to share data to strengthen and sustain feedback loops. This article is also included in the Business & Management Collection which can be accessed at http:// hstalks/business.
Keywords: fraud; systems theory; consumer behaviour; payments regulation

Fast payment systems (FPS) are revolutionising payment ecosystems globally by enabling faster, more efficient and cost-effective transactions. While over 100 countries have adopted some form of FPS, small-population economies like those in the Caribbean Community (CARICOM) remain underrepresented in both implementation and research. As of 2025, only 2 of the 15 CARICOM countries have launched FPS platforms, and one of these lacks key modern features. This paper addresses this gap through a Jamaica-specific economic impact model that applies a conservative, bottom-up methodology. Using official data from the Bank of Jamaica and global GDP multipliers, the model estimates cumulative direct efficiency gains of approximately US$22.18m over a three-year horizon. These gains stem from the reduced transaction costs associated with real-time gross settlement, automated clearinghouse transfers and debit card payments at the point of sale. The analysis excludes broader non-monetised benefits such as improved financial inclusion, tax transparency and innovation, making it a lower-bound estimate. The paper also benchmarks FPS functionalities in both the Latin America and Caribbean region and worldwide, identifies feature gaps, and offers policy guidance tailored to small economies. The findings serve as a replicable framework for CARICOM policymakers and make a compelling case for coordinated regional action to modernise payment systems and unlock inclusive growth. By implementing FPS, CARICOM countries can begin to realise benefits similar to those observed in many other jurisdictions globally; ranging from cost savings to financial inclusion and innovation. This article is also included in the Business & Management Collection which can be accessed at http://hstalks/business.
Keywords: real-time payment systems; fast payment systems; instant payment systems; CARICOM; Jamaica; digital public infrastructure; economic impact assessment; financial inclusion; retail payments; RT-RPS framework; small-population economies

Recent years have seen a significant acceleration in the adoption of instant payment systems around the world, with about one-fifth of the global share of payments being processed instantly. These systems bring unprecedented speed and efficiency to the payments market, offering greater convenience for consumers. At the same time, however, they also enable fraudsters to operate more effectively. As a result, both the speed and volume of fraud have increased. In 2024 alone, global fraud losses were estimated to exceed US$1tn; almost 1 per cent of global GDP. The perpetrators are increasingly transnational criminal organisations using complex, multi-bank transaction schemes to conceal the destination of illicit funds. As a result, no single bank can gain full visibility of these networks through its own data alone. Standard rule-based and statistical approaches to fraud detection, relying on siloed bank-level data, are limited in effectiveness because they fail to capture network dimensions. This paper argues that the issue can only be addressed effectively through a holistic view of payment data at national and cross-border levels. This can be achieved by consolidating a shared data hub that enables: (1) real-time tracing and tracking of fund movements, allowing faster recovery for victims, quicker identification of mule accounts, and lower costs; and (2) more accurate fraud detection and risk scoring using graph-based data features. Moreover, when cross-industry and transnational utilities are built on such a hub, they enable mitigation and prevention strategies to operate synergistically, with each strengthening the other in a self-reinforcing cycle of resilience. This article is also included in the Business & Management Collection which can be accessed at http://hstalks/business.
Keywords: cross-industry data sharing; fast payment system; fraud detection AI; graph analytics; track-and-trace system; national fraud portal; money muling

Despite decades of reform, cross-border payment systems remain fragmented, slow and reliant on institutional trust and manual compliance processes. Existing infrastructures depend on layered correspondent networks and ex post verification rather than embedding regulatory logic into the transactional fabric. This paper introduces the RELEVANT framework, a policy architecture for programmable compliance-by-design. Drawing on initiatives such as the BIS Innovation Hub’s Projects Agorá and mBridge, the paper shows how programmable and interoperable architectures can shift governance from rule enforcement to protocol execution. Within this construct, the programmable stack is outlined as the operational layer enabling shared logic for settlement, identity and regulatory conformity across jurisdictions, transforming legal enforceability and finality into programmable outcomes. By shifting the analytical lens from institutions of trust to protocols of trustworthiness, the paper argues that a global, programmable architecture can advance payment system modernisation while preserving accountability and systemic resilience. This article is also included in the Business & Management Collection which can be accessed at http://hstalks/business.
Keywords: global instant payments; programmable compliance; RELEVANT framework; policy-aware infrastructure; financial governance; privacy-enhancing technologies; cross-border interoperability

The design of financial instruments and processes is contingent on the infrastructure supporting them. Blockchain technology, as utilised by public crypto networks such as Ethereum, represents a novel type of payment and settlement infrastructure that gives rise to a new generation of solutions. This paper discusses the key properties of this technology, including immediacy, omni-asset capability, programmability and its ability to flatten the financial architecture (disintermediation). We illustrate the distinctive products these features make possible, and have the potential to disrupt current payment and capital market systems. We discuss the utility of blockchain technology in private (permissioned) networks. Finally, we revisit the risks of public crypto networks and their mitigants. This article is also included in the Business & Management Collection which can be accessed at http://hstalks/business.
Keywords: market infrastructures; blockchain; settlement; efficiency

This paper examines the key regulatory frameworks responsible for determining the payment operations of financial institutions, in addition to consumers’ interactions with payment providers, and discusses the associated challenges and potential opportunities. The paper discusses how compliance with modern regulations, such as the Revised Payment Service Directive and General Data Protection Regulation, in concert with legislation to combat money laundering and the financing of terrorism, enable better security practices through data security protocols and innovative protective measures. The paper argues that organisations that take a constructive approach to compliance management are not simply better protected from risks; they also enjoy a competitive advantage in the form of increased customer loyalty. Organisations must observe regulations as they make strategic technology investments to make their operations sustainable. To navigate the regulatory landscape successfully, payment providers must build strategic partnerships with industry participants. Security measures linked to technological advancement are essential for digital transactions to provide customers with convenience and regulatory compliance standards. This article is also included in the Business & Management Collection which can be accessed at http://hstalks/business.
Keywords: AML directives; PSD2 compliance; consumer protection; data protection; digital transactions; financial innovation; payment regulations

Legacy cut-off windows, fragmented messaging standards and post-transaction compliance create frictions in global payments. This paper proposes a three-pillar framework for programmable money that reconceives liquidity, value movement and trust as event-driven logic. Results show a 57 per cent reduction in processing costs when instructions travel as native ISO 20022 objects and liquidity buffers are recalculated every 15 seconds. Working capital tied up in settlement falls by 120 basis points, while real-time compliance screening cuts false-positive alerts by 67 per cent. Under a 100 million-transaction annual scenario, an additional US$285bn in global GDP is projected by 2028. Analysis indicates that banks can recover ISO 20022 migration expenses within 18 months. The paper concludes with a staged roadmap and outlines research gaps. This article is also included in the the Business & Management Collection which can be accessed at https://hstalks/business.
Keywords: API-based finance; ISO 20022; clearing and settlement; payments compliance; programmable money; real-time liquidity; transaction banking

At a time when, as the European Card Payment Association puts it, ‘economic relationships between nations can quickly sour’,1 the issue of resilience in payment systems has become both more important and more urgent in the strategic plans of governments, financial institutions and businesses alike. Some European governments have tended to look at cash as the key to resilience in retail payments, advising citizens to hoard (non-interest-bearing) cash at home — but is this the best strategy? This paper examines both natural and man-made disasters to see what lessons we can learn about the use of cash as a backup to electronic payment systems. The paper concludes that rather than rely on cash alone, the best way to increase the overall resilience of both national and regional payment systems in general, and pan-European payments infrastructure in particular, is through the use of multiple, independent electronic payment systems alongside some cash. The paper further concludes that the addition of ‘offline’ payment capabilities would substantially increase resilience, and that this should therefore be a focus of interest for strategists in the field. The paper suggests four areas where European strategic planners might focus: aiding domestic schemes to evolve adjacent functionality (specifically, digital identity); accelerating the take-up of account-to-account payments; advancing the use of stablecoins; and advocating for the development of offline central bank digital currency. This article is also included in the Business & Management Collection which can be accessed at http://hstalks/business.
Keywords: disaster recovery; payments; resilience; security

Digital currency is a novel form of money that could be issued and regulated by central banks or other actors, offering benefits such as programmability, security and privacy. However, the design of a digital currency system, including but not limited to central bank digital currency, presents numerous technical and social challenges. This paper presents the design and prototype of a non-custodial wallet; a device that enables users to store and spend digital currency in various contexts. To address the challenges of designing a digital currency system, we conducted a series of workshops with internal and external stakeholders, using methods such as storytelling, metaphors and ‘provotypes’ to communicate digital currency concepts, elicit user feedback and incorporate normative values into the technical design. We derived basic guidelines for designing digital currency systems that balance technical and social aspects and reflect user needs and values. Our work contributes to the digital currency discourse by demonstrating a practical example of how digital currency could be used in everyday life and by highlighting the importance of a user-centred approach. This article is also included in the Business & Management Collection which can be accessed at http://hstalks/business.
Keywords: design models; digital currencies; non-custodial wallet; payments

The revised Payment Services Directive (PSD2) set ambitious goals to introduce payment initiation services (PIS) as a viable online alternative to card payments. Through studies and consultations, this paper reviews the market uptake of PIS. It then explores the online payments ecosystem to identify gaps in the PIS ecosystem that the card schemes address to help maintain their dominance in the online payments ecosystem. While exploring these gaps, this paper seeks to assess whether the Proposal for a Regulation of the European Parliament and of the Council on payment services in the internal market (PSR) will meaningfully increase the uptake of PIS in e-commerce relative to card payments. Where the PSR falls short, the paper identifies opportunities within complementary frameworks to drive stakeholder engagement and promote broader adoption of payments powered by PIS. This article is also included in the Business & Management Collection which can be accessed at http:// hstalks/business.
Keywords: PSD2; PSD3; PSR; open banking; payment initiation services; variable recurring payment

The European Union’s retail payments landscape is undergoing rapid transformation but remains hampered by fragmented regulation, uneven competition and emerging fraud risks. This paper examines four central dimensions and sets out targeted policy recommendations. First, on regulation and compliance, the Payment Services Directive 3 (PSD3) and the Payment Services Regulation (PSR) should move beyond formal harmonisation by simplifying legal texts, avoiding excessive delegation to technical standards and fostering supervisory convergence to create a truly integrated market. Secondly, to strengthen resilience and competitiveness, policy should prioritise interoperability among private pan-European initiatives such as Wero and EuroPA, while ensuring complementarities with public projects like the digital euro, supported by common standards and settlement infrastructure. Thirdly, fraud prevention requires more dynamic transaction monitoring, multilayered defences, proportionate liability-sharing and EU-wide intelligence-sharing mechanisms aligned with data protection rules. Finally, fair access to enabling technologies such as near-field communication and secure elements must be guaranteed through transparent frameworks, proportionate fee structures and incentives for cross-platform interoperability. Taken together, these recommendations provide a strategic policy agenda to reinforce innovation, security and integration in EU retail payments, underpinning both consumer trust and Europe’s digital economy. This article is also included in the Business & Management Collection which can be accessed at http://hstalks/business.
Keywords: EU competitiveness; PSD3; PSR; digital euro; fraud prevention; instant payments; retail payments; strategic autonomy

This paper examines combinatorial innovation, positing that significant technological and societal advancements frequently stem from the novel recombination of existing components, ideas and technologies rather than radical invention. Using India’s Unified Payments Interface (UPI) as a case study, it dissects how the National Payments Corporation of India created a globally impactful, transformative digital payment ecosystem through the strategic integration of existing elements, including real-time fund transfer mechanisms, application programming interface standards, third-party payment initiation models and QR code technology. The paper highlights UPI’s role as quintessential digital public infrastructure, illustrating how robust public infrastructure can be rapidly and cost-effectively assembled and deployed through combinatorial innovation. By analysing UPI’s rapid adoption, massive scale and profound impact on financial inclusion and merchant acceptance, this paper demonstrates how combinatorial innovation can lead to groundbreaking solutions without having to create new building blocks. Furthermore, UPI exemplifies reverse innovation: a solution developed for an emerging market that is now inspiring developed economies. The paper discusses the implications of this approach for fostering innovation and identifies an existing gap in network-level interoperability within the QR code ecosystem, presenting a missed opportunity for even greater resilience and competitiveness. This article is also included in the Business and Management Collection which can be accessed at http://hstalks/business.
Keywords: NPCI; UPI; combinatorial innovation; digital public infrastructure; financial inclusion; payment innovation; payment systems; reverse innovation

This paper describes the unique role of Payments Canada, the owner and operator of national clearing and settlement systems in Canada. As a public-purpose organisation established through legislation, Payments Canada plays a critical role in advancing initiatives to modernise payments, and promote greater innovation and competition in Canada. This includes broadening access to Canada’s payment infrastructure through expanded Payments Canada membership eligibility, the launch of a real-time payment system, and modernising the retail batch system. Working alongside its members, participants, regulators and other stakeholders, Payments Canada is prepared for the changing payments ecosystem, both today and into the future. This is as more Canadians are adopting electronic and digital payments, despite continuing to use paper-based options. Enhancements to the national Automated Clearing Settlement System will continue to provide participants with a cost-efficient mechanism for low-value and less urgent payments. Additionally, the Real-Time Rail will have the ability for centralised fraud capabilities immediately at go-live. Engagement among regulators, members and other stakeholders will help drive these initiatives. This article is also included in the Business & Management Collection which can be accessed at http://hstalks/business.
Keywords: competition; credit; debit; modernisation; payments; real-time rail

In 2018, Swift and McKinsey & Company published ‘A Vision for the Future of Cross-Border Payments’, outlining eight fundamental shifts expected to reshape international payments. This paper revisits those predictions and evaluates their accuracy amid rapid technological advancements, evolving customer demands and complex regulatory environments. Traditionally dominated by correspondent banking, the global cross-border payments landscape has transformed significantly, driven by emerging technologies, alternative solutions, customer requirements and heightened competition. The paper recounts how international payments — integral to global commerce, trade, and investment — have grown beyond initial projections. It explores how many predictions were largely confirmed, notably the accelerated growth in payment volumes, the shift in customer experience and the global efforts to reduce fragmentation. It also reflects on some areas, such as the integration of digital interfaces for corporate users or the cost or performing international payments, which still lag behind their retail counterparts. Furthermore, fragmentation in the payment value chain has intensified rather than converged, challenging the vision of a unified global payment experience. Regulatory initiatives have played a crucial role, with efforts to standardise frameworks and reduce transaction costs, yet alignment remains elusive. The paper underscores liquidity management as a persistent competitive edge for large global banks, despite rising competition from non-bank players. In light of these insights, the authors reaffirm the original recommendations: reimagining revenue models, refining client value propositions, upgrading operational and IT infrastructures, embracing collaborative ecosystems and redefining market roles. As the cross-border payments ecosystem continues to evolve amid economic and geopolitical uncertainties, this retrospective provides guidance for stakeholders navigating future challenges and opportunities in the dynamic world of international finance. This article is also included in The Business & Management Collection which can be accessed at https://hstalks.com/business/.
Keywords: international payments; cross-border trade; correspondent banking; Swift; Financial Stability Board; ISO 2022

The Zelle network has experienced considerable growth in the USA since its launch in 2017, reshaping peer-to-peer (P2P) payments through its direct integration with financial institutions. This paper reviews Zelle’s expansion strategies, market adoption drivers and the implications of its rapid rise for banks, regulators and consumers. Drawing on industry data from 2017 to mid-2024, the analysis situates Zelle within an evolving ecosystem that also includes competing P2P platforms such as Cash App and Venmo. The data show that Zelle’s bank-backed model has propelled its user base to over 140 million, with year-over-year increases exceeding 25 per cent in both transaction numbers and value. Strategic partnerships with more than 2,200 institutions, coupled with a focus on security and brand trust, have helped Zelle gain traction among demographics traditionally more cautious about digital payments. Nevertheless, fraud challenges and regulatory scrutiny have prompted new risk mitigation measures, including enhanced transaction monitoring and partial reimbursement policies for scam victims. The findings suggest that the alignment of Zelle’s product design with existing banking apps — emphasising simplicity, consumer trust and near-instant transfers — has accelerated its adoption across diverse consumer segments. By examining the underlying drivers of Zelle’s success and contrasting it with other major players, the paper offers recommendations for financial institutions, regulators and industry stakeholders on the opportunities and risks tied to bank-based P2P payment platforms. In conclusion, Zelle’s experience underscores the importance of collaboration, innovation and proactive risk management in shaping the future of real-time digital payments in the USA. This article is also included in The Business & Management Collection which can be accessed at https://hstalks.com/business/.
Keywords: Zelle; peer-to-peer payments; P2P; digital finance; real-time payments; USA; FinTech

In an economy that is ripe with economic policy uncertainty, businesses need to manage liquidity efficiently to survive the troughs and shocks. Chief financial officers and treasurers equally recognise the risk that inefficient liquidity management can pose to the very survival of the company. This research explores the transformative potential of modern payment solutions in optimising liquidity and enhancing financial flexibility for non-financial companies. It investigates how the strategic adoption of real-time payments, blockchain technologies and other innovative payment mechanisms can revolutionise receivables and payables management, thereby improving cash-flow forecasting, reducing working capital needs and strengthening overall financial health. This article is also included in The Business & Management Collection which can be accessed at https://hstalks.com/business/.
Keywords: liquidity; cash-flow forecasting; real time payments; blockchain; API; corporate treasury

This paper provides a framework to assess the contribution of digital currencies to promote financial inclusion, informed by an analysis of the financial inclusion landscape and domestic and cross-border payment systems in Latin America and the Caribbean. It also provides key considerations from central banks in the region on possible implementations of a central bank digital currency. The findings show that although digital currency development is at an early stage for payments, a well-designed system could reduce the cost of domestic and cross-border payments, improve the settlement of transactions to achieve real-time payments, expand the accessibility of central bank money, incorporate programmable payments and facilitate monitoring of real-time transactional data and traceability of transactions.This article is also included in The Business & Management Collection which can be accessed at https://hstalks.com/business/.
Keywords: fast payment systems; financial inclusion; central bank digital currencies; Latin America and the Caribbean

This paper discusses the Central Reserve Bank of Peru’s (BCRP)’s central bank digital currency (CBDC) pilot programme, which set out to test and evaluate retail CBDC as an instrument to promote the adoption and use of digital payments, particularly in areas of low financial inclusion. The paper shows how the BCRP developed a phased approach — encompassing research and assumption testing, with technical assistance from the International Monetary Fund. The design of the pilot is based on a hybrid model where the private sector provides user-facing services while the central bank ensures issuance, governance and oversight. A key feature of this pilot is its offline payment functionality, facilitated through a telecommunication company that operates in remote areas beyond the reach of traditional financial systems. This feature addresses the fact that many people in rural areas do not have access to smartphones. The paper highlights the quasi-experimental design of the pilot, which uses randomised district-level marketing promotions to evaluate the impact on digital payment adoption and cash substitution, among other variables. The paper provides a useful example of a practical approach that allows central banks to obtain information to evaluate the potential of digital currencies to promote access, the use of digital payments, and drive welfare gains in regions with low financial inclusion. This article is also included in The Business & Management Collection which can be accessed at https://hstalks.com/business/.
Keywords: central bank digital currency; CBDC pilot; digital payments

This paper explores the evolution of the Brazilian retail payments market, focusing on the regulatory framework, recent developments and emerging trends. Prior to 2013, the legal mandate of the Central Bank of Brazil (BCB) as regards payment service providers (PSPs) was limited to financial institutions. However, the implementation of Law no. 12,865/2013 brought powers to regulate, supervise and oversee not only payment schemes and their managers, but also payment institutions (ie non-financial firms offering payment services). Key initiatives in this realm include the development of Pix, an instant payment scheme managed by BCB, and the Open Finance ecosystem, which, among other features, facilitates payments through standardised application programming interfaces. This paper discusses how the BCB’s innovation agenda aims to boost efficiency, promote competition and deepen financial inclusion. It highlights the significant shift from cash and cheques towards electronic payment instruments, driven by the expansion of card acceptance and innovations like Pix. It also describes how the market has been further transformed by the entry of non-financial PSPs and the expansion of digital wallets. The paper concludes that while substantial progress has been made, there are still challenges to address, such as high interchange fees and the need for further digital and financial inclusion. The future of the Brazilian payments market is expected to be increasingly digital, with continued regulatory efforts and market innovations driving further advancements. This article is also included in The Business & Management Collection which can be accessed at https://hstalks.com/business/.
Keywords: retail payments; Pix; open finance; digital payments; financial inclusion; Brazil

Colombia is transitioning to a less cash-intensive economy, driven by significant changes in the electronic payments industry. Nevertheless, challenges such as coordination failures, market segmentation and lack of interoperability persist. This paper discusses how the Central Bank of Colombia is proactively addressing these issues through the regulation and consolidation of the fast payments ecosystem. The goal is to make electronic payments widely available for day-to-day transactions by achieving high interoperability between payment service providers and capitalising on network and scale efficiencies. Additionally, the central bank is experimenting with new technologies, such as distributed ledger technology, which may enhance financial and payment market infrastructures in the future. This article is also included in The Business & Management Collection which can be accessed at https://hstalks.com/business/.
Keywords: fast payment systems; Bre-B; CBDC; payments regulation; interoperability; digital wallets; APIs; ISO 20022

In this paper, Atze Faas shares his perspective on merchant payments, drawing on his personal experience working for bp, a large fuel retailer, as well as his recent activity working on retail payments in the EU context. After covering the key processes for establishing and executing a payments strategy, he discusses the legislative process of the EU in general. Before diving into the current payment related files currently under discussion, he explains how Europe has non-bank payment institutions and multiple domestic schemes. He covers the lack of competition and transparency around card payments, the importance of European payment solutions, such as instant payments and the digital euro, and the acceptance of cash. He finishes with a call to all stakeholders in the payments ecosystem to keep engaging with merchants.
Keywords: merchant payments; card schemes; instant payments; digital euro; cash; payment strategy; legislative process; competition

Within the world of payments, the perceived importance of data continues to increase. In particular, there is a stronger desire for decisions to be data-driven and to leverage technology to improve financial performance. This paper discusses how large merchants can utilise their existing relationships with payment providers to collect high volumes of raw transactional data, straight from the payment provider’s own system. Such data can be utilised to address numerous payments related profitability challenges as well as to support strategic business plans more broadly. This paper describes a wide range of business use cases that may be facilitated by obtaining and integrating payment data, including process efficiencies, cost control, customer profiling, identifying revenue growth opportunities, and fraud insights. It also discusses the advantages of taking an in-house, raw-format approach to the gathering of payment transactional data, including avoiding added cost on the payment service fee, synergies in internal processing of data to universal standards, and ultimate control of the data once obtained. The paper goes on to address the essential challenges to overcome, notably management engagement and investment in the required infrastructure, and the risk of unrealistic expectations. Finally, the paper encourages large merchants to recognise the high potential value of payment transactional data, and to consider the use of such data in new and more expansive ways.
Keywords: acquiring; payments data; reconciliation; data-driven decision making; data integration; data warehousing; payments cost

The fuel retail industry is undergoing a profound transformation driven by rapid technological advancements, evolving customer expectations, and the pressing need for sustainability. No longer confined to traditional fuel dispensing, modern fuel retail sites are evolving into multi-functional mobility hubs that offer a variety of services, energy types and transport solutions. In this dynamic landscape, data have emerged as the cornerstone of operational efficiency, customer satisfaction and sustainable growth. For payments professionals, leveraging data effectively is essential to optimise merchant payment systems, mitigate risks and support these evolving business models. This paper provides seasoned payments professionals with actionable insights and best practices for leveraging data within the fuel retail industry’s payment ecosystems.
Keywords: payments; data; merchants; fuel; retail; artificial intelligence

This paper examines how fraudsters misuse the banking infrastructure to their benefit, particularly through methods like authorised push payment fraud and the exploitation of the direct debit infrastructure. Banks, payment service providers/merchant acquirers, scheme owners and clearinghouses each have a role to play as critical players in combating this type of fraud, but too little has been done so far. To tackle this growing threat, the paper outlines actionable changes, ranging from enhanced regulatory frameworks to tailored merchant strategies. These changes can be made by each player to address and reduce the gaps in the banking infrastructure and the relevant payment types going forward, providing a roadmap for a more secure payments ecosystem.
Keywords: payments; bank transfers; direct debit; authorised push payments (APP); fraud; merchant; banking rails; anti-fraud strategies; payment fraud frameworks

The emergence of instant payments and central bank digital currencies (CBDCs) is poised to significantly reshape treasury management practices among merchants. These new digital payment models promise near real-time settlement, reduce counterparty risk, and could lower transaction costs, all of which have implications for merchants’ liquidity and working capital strategies. Nevertheless, their adoption also entails new complexities around technology integration, regulatory compliance, and the interplay between multiple payment rails (card, e-money, instant payments and CBDCs). This paper explores how instant payments and CBDCs could transform merchant cash management, focusing on cost efficiency, liquidity and operational risk. Drawing on examples from regions with live real-time payment systems, the discussion examines how faster settlement cycles can streamline forecasting and reconciliation processes. It also highlights new considerations for fraud prevention, cyber security and treasury infrastructure investment. Finally, potential opportunities around programmable money in the case of CBDCs — such as automated micropayments and smart contractbased transactions — are discussed, detailing how these capabilities could enhance treasury operations. The paper concludes by outlining strategic steps for merchants, including close collaboration with financial institutions and payment service providers, agile technology adoption, and a robust regulatory compliance framework.
Keywords: instant payments; central bank digital currency; treasury management; erchant cash management; liquidity; digital payments; settlement

This paper examines the practice of surcharging card payments, which is designed to increase transparency and reduce the cost of card acceptance for merchants. However, the theory behind surcharging does not always align with its outcomes in practice. Despite its intended benefits, such as encouraging cost-effective payment methods and reducing merchant service fees, the global implementation of surcharging has produced mixed results. While surcharging is legal in certain markets, like Australia and the USA, it often leads to overcharging by small merchants, a lack of consumer benefits, and regulatory challenges. This paper explores the current state of surcharging across key markets, identifies the main beneficiaries of the practice, and highlights the need for stronger regulation of payment acceptance costs. Ultimately, it argues that surcharging has failed to meet its goals and that a more competitive and regulated payment ecosystem is necessary to achieve genuine transparency and cost reductions.
Keywords: surcharging; interchange; payments; merchants; regulation; merchant service fees; acquiring

A new frontier for payments is emerging where the ‘traditional’ world of machine-to-machine and automated payments intersects with the rapidly evolving world of artificial intelligence (AI). As the bots evolve from simple chatbots to intelligent agents, known as Agentic AI, they will evolve from machines (in the most general sense) under our control into robots capable of making their own decisions and, by implication, their own payments. This is where we see an emerging demand for robot-to-robot (R2R) payments and the commensurate need for a strategic response from the payments sector to meet this need. While early experiments in machine payments have used existing mechanisms (eg blockchain and payment cards) it is not clear that these mechanisms can satisfy the needs of the emerging sector. This paper extends a taxonomy of payment types to include AI and looks at the specific needs of the R2R subsector. It presents some of the opportunities for FinTechs to create new products and services to complement the offerings of the ‘traditional’ players at the intersection of AI, machine payments and financial services. It concludes that the smart wallet (ie a digital wallet that can be operated by a robot) will be the central orchestration mechanism. We see the potential for a new payments infrastructure emerging to both re-energise past propositions (eg micropayments) and create entirely new ones (supply-chain currencies). New transactions and new trade mean new prosperity. With the right governance in place, the payments industry can explore this entirely new frontier to the great benefit of the economy as a whole.
Keywords: payments; AI; bots; agents; M2M; R2R; smart wallets; open finance

It has been about 40 years since PIN-based card payments first appeared in Europe, marking the start of a major shift in how transactions are handled. Since then, we have moved to more advanced systems, like contactless and mobile-initiated payments. Each step in this journey has not simply changed the way that customers pay, but also how merchants interact with payment technologies, bringing with it a fresh set of challenges and opportunities for merchants. As merchants have adapted to these technologies, they have learned valuable lessons, particularly as regards customer experience, transaction security and payment processing speed. This paper explores these milestones in the history of payments from the merchant’s perspective. The paper will highlight the key takeaways from each stage of the evolution and how merchants responded to changes in consumer behaviour and technological advancements. Finally, the paper will offer a preview of innovations in the payment landscape that are set to impact merchants in the years ahead.
Keywords: merchant payment history; PIN-based payments; contactless transactions; payment technologies; mobile payments