Closer collaboration and coordination needed to drive single payments connectivity in Asia
Seven years after its initiation, the Asian Payment Network project remains elusive, as key actors such as commercial banks and financial regulators show lack of interest and commitment. November 08, 2013 | ResearchThe Asian Payment Network was an initiative launched in 2006 by ASEAN member countries, namely Singapore, Malaysia, Indonesia and Thailand, in coordination with the countries’ respective central banks. It was organised as a private sector response and dialogue partner to the then ASEANPay Steering Committee, a body composed of representatives from central banks in ASEAN, which was tasked to formulate a framework for efficient and reliable cross-border payment services within the region. The voluntary and informal association is registered in Kuala Lumpur and brings together payment operators from major ASEAN countries – Singapore, Malaysia, Indonesia, Thailand; with the Philippines and Vietnam subsequently joining in 2008 and 2009 respectively. More recently, electronic payment operators from Australia, China, New Zealand and South Korea joined the association. In addition, the membership of the Asian Payment Network expanded in Sept 2013 to include NTT Data of Japan, FISC of Taiwan, NPCI of India, and BANCNET (Philippines). The Asian Payment Network has established standards for cross-border ATM cash withdrawals, balance inquiry and funds transfers; POS standards for cross-border purchases using debit cards are in the pipeline. Yet, despite its core objectives to build a regional platform, define and implement standards, as well as achieve enhanced inter-operability amongst member countries, the Asian Payment Network remains far from accomplished seven years after initiation, as key actors, such as commercial banks and financial regulators, have not bought into the idea. Whilst the network covers electronic payment operators in participating ASEAN countries, there has been little or no participation from both issuers and acquirers in these countries. A single connectivity cannot be achieved until there is active usage of the inter-operability envisaged by the Asian Payment Network, thereby creating the much needed business volume. Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Capital & Strategic Issues, Retail Banking, Retail Payments, Risk and RegulationCapital & Strategic Issues,retail,Retail Payments,Risk and Regulation, Capital & Strategic Issues,Retail Banking,Retail Payments,Risk and Regulation, Keywords:Asian Payment Network, ASEANPay Steering Committee, NETS, MEPS, RINTIS, UnionPay, WC-PSS Asian Payment Network, ASEANPay Steering Committee, NETS, MEPS, RINTIS, UnionPay, WC-PSS
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