In this worldwide research project Anthemis Group Director, Andrew Veitch set out to understand whether national markets should invest in domestic payment schemes or whether domestic card payments should be outsourced to the international giants. The research was conducted alongside John Chaplin and Prof Jürgen Bott. The project highlights that national payments schemes, as low cost providers, have an integral role in promoting financial inclusion, especially through mobile. This is most pronounced in the developing world where mobile provides a means for the unbanked population to access formal financial services. Domestic payments schemes have the ability and inclination to integrate easily with other domestic service providers, such as mobile wallets, enabling them to play a vital part in combatting poverty and supporting economic growth in their countries.
The group found that the large number of domestic schemes that took part in the research were on balance more optimistic about their prospects than they were two years ago. 56% of those surveyed were optimistic about the future compared to 32% being pessimistic. The optimism is driven by two key factors:
- They offer lower overall costs to their participants than the competing international schemes which is vital as the overall industry comes under ﬁnancial pressure
- Their ability to develop products suited for the local market often involving integration with other domestic service provider
You can read the report here.