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GCRI · Digital Public Infrastructure

Digital payments and services

Fast payment systems, mobile money and digital government transfers let people pay, receive wages and benefits, and access services quickly and cheaply. They can widen financial inclusion and speed emergency transfers, and they concentrate operational and fraud risk. This page sets out how digital payment systems and services work, how use and reliability are measured, and what evidence serves the central banks and agencies that run and regulate them.

01Register

Digital payments and services on the record.

02The question

Digital payments and services: how the risk develops.

Digital service interfaces and dependencies. The dossier below sets out how the risk develops, what is measured, where the data come from, how it is modelled and who decides.

Mechanism

Instant payments change behaviour

Fast, low-cost retail payment systems let people and businesses pay instantly at any time, drawing payments away from cash.

Mechanism

Transfers reach people faster

Digital government-to-person payments reach recipients faster and with less leakage than cash, which matters in emergencies.

Mechanism

Fraud moves online

Instant, irrevocable payments attract scams and account takeover, shifting losses to consumers unless safeguards and reimbursement rules exist.

Mechanism

Outages stop commerce

When a central payment system or major provider fails, many transactions stop at once, affecting shops, wages and services.

03Simulator

Contagion on an interbank network.

A loss on external assets distresses banks in proportion to their leverage; DebtRank passes the distress along interbank exposures, round by round, until it settles. Teaching model with stated illustrative values, not a prediction.

Controls

Fall in external assets
2.0%
Leverage (assets over equity)
10 times
Interbank share of assets
10%
Recovery on interbank claims
40%
Banks in the system
20
Core banks
20% of banks

Readouts

Equity lost to the initial shock
18.0%
Equity lost after contagion
45.0%
Added by contagion (DebtRank)
27.0 points
Banks in default
0
Numbers, methods and sources
RoundSystem equity lost (%)Banks in default
018.000
128.800
235.280
339.170
441.500
542.900
643.740
744.240
844.550
944.730
1044.840
1144.900
1244.940
1344.960
1444.980
1544.990
1644.990
1745.000
1845.000
1945.000
2045.000
2145.000
2245.000
2345.000
2445.000
2545.000
2645.000
2745.000
2845.000
2945.000
3045.000

Methods

  1. DebtRank Battiston and others (2012), Scientific Reports 2:541
  2. Differential DebtRank Bardoscia and others (2015), PLOS ONE 10
  3. Contagion in financial networks Gai and Kapadia (2010), Proc. R. Soc. A 466
  4. Clearing in financial networks Eisenberg and Noe (2001), Management Science 47
  5. Uncertainty fan (parameter Monte Carlo) Spiegelhalter, Pearson and Short (2011), Visualising uncertainty about the future, Science 333
  6. One-at-a-time sensitivity (tornado) Saltelli and others (2008), Global Sensitivity Analysis: The Primer, Wiley

Data

No observed data enters this model: it runs on the teaching values set by the controls, to be replaced with a programme's own evidence.

Contagion on an interbank network. Illustrative teaching model: it runs on the values set by the controls, not on measured data. Methods: DebtRank (Battiston and others (2012), Scientific Reports 2:541); Differential DebtRank (Bardoscia and others (2015), PLOS ONE 10); Contagion in financial networks (Gai and Kapadia (2010), Proc. R. Soc. A 466).
04Across the domains

Digital payments move money for every domain's services.

Findings are designed for the Strategic Systems series. Payment infrastructure follows the CPMI-IOSCO Principles (2012) and ISO 20022 messaging; finance questions sit with The Global Risks Alliance (GRA).

  • Payment outage records.
  • Inclusion studies.
05Methods and evidence

How digital payments and services is modelled, measured and tested.

The model, its assumptions, its data and its uncertainty, in the form a scientist or engineer would check. Structures follow published methods. The values drawn are illustrative, not findings.

Datasets and provenance

The data classes behind digital payments and services and what is recorded about each before it is used.

Data classProvenance recordedResolution statedLicence checked
Satellite imagery, optical and radarsensor, processing level, acquisition datepixel size and revisitper scene
Reanalysis and climate model outputmodel, experiment, member, versiongrid and time stepper release
In-situ sensors and gaugesstation, instrument, calibration recordpoint and sampling rateper network
Population and asset exposuremethod, vintage, input sourcescell size and unitper release
Boundaries and reference geographyproducer, edition, datescaleper edition
Lineage
W3C PROV record from source to figure
Principles
FAIR: findable, accessible, interoperable, reusable
Gaps
shown as missing, never filled silently
Data classes and the provenance fields recorded for each; a dataset is listed by name only once its licence admits the use.
FAIR guiding principles · GO FAIR and FORCE11W3C PROV · World Wide Web ConsortiumGuidance on consistent treatment of uncertainties · IPCCCEOS Analysis Ready Data · Committee on Earth Observation Satellites
06Indicators

What is measured, and how well.

Each indicator carries its unit, its cadence, the kind of source behind it and the evidence label a value would carry. No values are shown: a programme supplies them under its own authority.

IndicatorUnitCadenceSource typeLabel
Adults making or receiving digital paymentspercent of adultsper surveyGlobal FindexREPORTED
Fast payment system transactionscount per capitaannualCentral bank statisticsPublished statistics
Government transfers paid digitallypercent of transfersannualProgramme recordsPublished statistics
Authorised push payment fraudvalue and countannualIndustry and regulator reportsREPORTED
Payment system availabilitypercent of scheduled timeannualOperator reportsPublished statistics
Cost of remittancespercent of amount sentquarterlyRemittance price dataOBSERVED
07Sources

Where the evidence comes from.

Named public datasets and institutional records, each with its licence class. Sources by agreement are used only under their terms and never republished.

SourceWhat it givesLicence class
World Bank Global Findex DatabaseUse of accounts and digital paymentsOpen, CC BY 4.0
BIS CPMI Red Book statistics and fast payments reportsPayment statistics and fast payment system practicePublic, BIS terms
World Bank Remittance Prices WorldwideCost of sending remittancesOpen, CC BY 4.0
Central bank payment system reportsVolumes, availability and incidentsPublic records, terms per central bank
Regulator and industry fraud reports, such as UK Finance annual fraud reportsPayment fraud volumes and typesPublic, terms per publisher
08Decisions

Who decides, and what the evidence serves.

Digital Public Infrastructure prepares evidence. The decisions below are taken by the authorities named, under their own rules, and never by the platform.

Who decidesThe questionEvidence this page serves
Central banks and payment regulatorsHow to design and oversee fast payment systems and fraud safeguardsFraud reviews; resilience assessments
Social protection agenciesHow to pay benefits digitally without excluding peopleInclusion profiles; transfer evidence
Payment service providersHow to reduce fraud and outagesFraud and availability evidence

Outputs this topic produces

  • Payment inclusion profiles by group
  • Fraud and consumer protection reviews
  • Payment system resilience assessments
  • Evidence notes on digital transfers in emergencies
09Core questions

What experts ask.

Payments are the point at which DPI touches household budgets most directly. Government-to-person transfers, wage payments, merchant payments and remittances increasingly move through digital rails. When they work, they reduce delays, leakage and the cost of handling cash. When they fail, through outages, fraud or exclusion, the people affected may have no buffer.

  • How interoperable are payment systems, so that users of different banks and mobile money providers can pay each other?
  • How do digital payment services depend on identity, telecommunications, cloud hosting and settlement systems?
  • Which users face fees, fraud or failures that discourage use, and what protections exist?
  • What fallbacks exist when digital payment channels are unavailable?
10Mechanisms

Drivers and processes.

Digital payments link front-end services to identity, connectivity and settlement.

Interfaces

Front-end services

Apps, agents, cards and quick-response codes through which people pay. Agent networks matter where connectivity and literacy are limited.

Rails

Interoperable systems

Fast payment systems and switches that connect providers. Interoperability lowers costs but creates shared dependencies.

Protection

Fraud and consumer safeguards

Social engineering, account takeover and unauthorised transactions harm users, especially those new to digital finance.

Experience with large government transfer programmes has shown that the last mile matters as much as the rails. A transfer that reaches an account is of little use if the recipient cannot withdraw it nearby, does not know it has arrived or loses it to fraud. Studies of DPI payments therefore follow money all the way to its use, not only through the switch.

11Methods and data

How the evidence is built, and its limits.

  1. 01

    Transaction data

    Aggregate volumes and values show adoption. Individual data are held by providers and require strict safeguards.

  2. 02

    Outage analysis

    Incident reports from operators and central banks show failure modes. Public reporting varies widely.

  3. 03

    Household surveys

    Show who uses digital payments, for what and what barriers they face.

  4. 04

    Systems analysis

    Dependency analysis of payment architecture, applying payment and financial market technology, with limits set by access to operator information.

13Where this page's references

Where this page's references lead.

The bodies and documents this page is read against. Status and editions change; each link goes to the issuing body.

14Questions

Questions and answers.

What is a fast payment system?
A payment system that transfers funds between accounts in seconds, at any time, with immediate availability to the recipient.
What is authorised push payment fraud?
A scam in which a person is tricked into sending money from their own account to a fraudster.
Why do digital government payments matter?
Because they can reach people faster and more securely than cash, including in emergencies, if recipients have accounts and access.
Are digital payments always cheaper than cash?
Often for governments and businesses at scale, but not always for users, who may face fees, data costs or travel to agents to cash out.
Should cash be kept as a fallback?
Many authorities treat cash as a resilience and inclusion fallback. The question is studied at cash and digital resilience.
Does the platform evaluate payment providers?
No. It studies systems and evidence and does not rate, endorse or advise on providers.
How do digital payments relate to identity?
Account opening and authentication often rely on identity systems, so identity failures can block access to payments.
ReportsContribute

Contribute evidence from this page.

Reports is the Consortium's quarterly publication. What you know about this subject can become evidence, a case or a correction in the next edition, credited to you and published under CC BY 4.0 where it is your own work.

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