Leo Lipis, chief executive and Colin Adams, senior consultant both of Lipis Advisors discuss their research on the wide range of regional payments projects and the factors behind successful integration at Finextra TV. Via Finextra: The success of regional payments projects. Their Swift working paper can be downloaded here.
Their conclusion in short:
Nevertheless, there are some factors that are absolutely essential to regional paymentsintegration, and while the lack of such factors in any one region could be a result of a conscious decision by stakeholders to keep integration limited, the “success” of regional payments integration depends heavily on the following five categories:
- Linkage of payments integration to a political goal
- Common currency / common settlement currency
- Centralized governance structure
- Common data standard
- Align the motivations of different stakeholdersSuccess can be defined in different terms in each regional payments area. On a technical and business level, implementing common standards or a common infrastructure that operates as planned can certainly be deemed a success. But no regional integration effort sees the execution of a cross-border payment as the end goal.
What I miss in the research paper is the legal framework needed.