How can payment system interoperability reduce cyber attack risks?

2 How can interoperability reduce cyber risks?

Interoperability can reduce cyber risks for payment systems by enabling diversification, coordination, innovation, and regulation. By allowing users to choose from a variety of payment options and providers, interoperability reduces their dependence on a single system or channel that may be compromised or unavailable. Furthermore, it facilitates collaboration and information sharing among different payment systems and stakeholders, which can improve their awareness and preparedness for cyber threats and incidents. Additionally, interoperability encourages the development and adoption of new technologies and standards that enhance the security and efficiency of payment systems. Finally, it supports the harmonization and compliance of the rules and requirements for payment systems across different jurisdictions and markets, creating a more transparent and accountable environment for cyber risk management.

3 What are the challenges for interoperability?

Achieving interoperability is not an easy task due to the various technical, operational, and strategic challenges it presents. Compatibility issues can arise from different payment systems having different architectures, protocols, formats, or interfaces. Interoperability also increases the number and diversity of actors and interactions involved in a payment system, creating more points of entry for cyber attacks. Additionally, some payment systems or providers may be resistant or reluctant to cooperate or share data with others due to the potential impact on their market position and profitability. Lastly, interoperability may require changes in user and operator behavior and expectations such as trust, convenience, or privacy.

4 What are the opportunities for interoperability?

Interoperability offers many opportunities and incentives for payment systems and their stakeholders, such as expanded access and affordability of payment services for underserved populations, reduced friction and costs of payment transactions, the creation of new markets and business models, and the adoption of green and digital payment solutions. In this way, interoperability can promote financial inclusion, social development, speed and convenience of payments, innovation and competition, as well as environmental and economic sustainability.

5 How to achieve interoperability?

Achieving interoperability requires a coordinated and collaborative effort from various stakeholders, such as payment systems, providers, regulators, customers, and experts. The key steps and actions for achieving interoperability involve conducting a comprehensive analysis of the current and future needs, capabilities, and risks of the payment systems and their users to identify gaps and opportunities. Additionally, a clear and consistent vision and strategy for interoperability must be developed with objectives, scope, standards, and governance of the interoperable payment system. Executing the interoperability project is also necessary to ensure alignment and integration of the technical, operational, and regulatory aspects of the payment system. Furthermore, evaluating the performance and impact of the interoperability project is important in order to measure the benefits, costs, and risks of the interoperable payment system. Lastly, updating and improving the interoperable payment system must be done continuously in order to adapt to changing needs, preferences, and threats of the payment system and its users.