David Jimenez Maireles

Cross border is one of the few payment types with still a significant amount of untapped potential improvement. Interlinking central payment infrastructure is one of the alternative solutions to correspondent banking. “Interlinking payment systems with new common platforms can support payment infrastructure integration across borders. These are not new concepts, but recent advancements in technology may increase the efficiency and decrease the cost of such arrangements. .. Over the past two decades, through a combination of digital innovations in payments and evolving end user needs and preferences, the regional integration of payment infrastructures has been expanding. This has enabled cross-border transactions for financial market participants or their customers, often between countries within a region. In some cases, this integration has spread across regions and even globally. Payment infrastructure integration is not only the linking of payment systems from a technical standpoint. It is equally about defining a common operational framework for transacting, clearing and settling cross-border transactions, as well as a robust governance and oversight framework that upholds the high standards of safety and financial integrity. In view of this challenging task, not all payment integration projects have been (or will be) successful. Several fast payment systems (FPS) that have become operational face some challenges in attracting participants and/or volumes even at a domestic level. Adoption of fast payments tends to be more widespread when the central bank owns the FPS. Publicly owned FPS may be designed to prioritise a public good perspective, aiming for open, inclusive and competitive payment markets. A user-centric approach, addressing diverse needs such as domestic person-to-person (P2P) transactions, merchant payments and cross-border transactions is also important. The inclusion of non-bank providers may improve access for underserved customers. Cross-border functionalities can expand the utility of FPS beyond domestic transactions. Cheap and fast cross-border transactions can also broaden the access of firms to global markets. Keeping these features in mind may help build strong public infrastructures that are widely adopted and support policy goals. .. Ultimately, the level of fragmentation or integration will depend primarily on policy decisions rather than technology." Source: https://lnkd.in/dRiE_fQE #payments #rtp #ips #crossborderpayments #paymentsystems Nafis Alam Prasanna Lohar Panagiotis Kriaris Sudin Baraokar Nicolas Pinto Sam Boboev  

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Arguably the most significant obstacle to a regional cross-border payments network in Southeast Asia has been the difference in regulations and payment practices among the different countries. Unlike the European Union, which has a central bank that determines monetary policy for all of the member states, Southeast Asia has no unifying financial institution. We will be interested to see if the Bank of International Settlements (BIS) and the founding members of Project Nexus can overcome this challenge. The initiative has set out to link the real-time payment systems of India, Malaysia, Thailand, Singapore, and the Philippines by 2026. Indonesia will be an observer in the project – though it is hard to envision a regional cross-border payments network that does not formally include Southeast Asia’s largest economy. To facilitate live implementation, the partner central banks and instant payment system (IPS) operators have agreed to work towards establishing a new entity, the Nexus Scheme Organization (NSO), which will manage the project. The NSO will be wholly owned by the central banks and/or IPS operators in participating countries. As for the BIS, the organization said in a July 1 statement, “In developing the blueprint in phase three of Nexus, the BIS has fulfilled its role of supporting central banks in finding innovative solutions to deliver public goods.” While the BIS will not own or operate the NSO, it will continue its support by playing a technical advisory role before Nexus goes live. It will also facilitate cooperation among members and the entry of new participants. Compared to the cross-border CBDC project mBridge that the BIS has been overseeing, we reckon Nexus may fare better. While CBDCs still often look like a solution in search of a problem, central bankers in Southeast Asia have long sought a regional real-time cross-border payments network to lower transaction costs as well as increase transparency and efficiency. India, meanwhile, has been actively seeking out a larger international role for its UPI payments rail, and Project Nexus offers a clear opportunity to deepen UPI’s global footprint. #bis #projectnexus #payments #crossborderpayments #fintech https://hubs.li/Q02Gv2Cj0

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Why do banks keep stepping on well-known rakes that have little to nothing to do with fintech or BaaS? Matthew Janiga from Trustly, Kiah Lau Haslett from Bank Director, and Jesse Silverman from Troutman Pepper break it down on the latest Breaking Banks Fintech Podcast, wherever you get your podcasts. Come for the expert views on how the Synapse bankruptcy has led to regulatory consent orders for three banks (so far), stay to find out what happens when two regulatory lawyers and a self-declared ‘bank nerd’ editor break down the issues and the lessons for the rest of the industry. We dive deep into what went wrong on the bank side, and what banks need to do to avoid a similar fate. 👉 Jesse has ideas for a better regulatory system, and says banks need to think beyond disclosures. 👉 Matt says banks need to step up their AML/BSA compliance systems and not try to do too much at once. 👉 Kiah gives a little history lesson and goes on a rant about how much of banks’ risk management systems are anything but. 👉 Everyone agrees that banks keep stumbling over well-known issues, and that the risks of inaction are too big to ignore.

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What is Open Banking and Why Is It Important for Southeast Asia? Simply put, open banking is a financial practice that enables end-users to share their banking data with third-party financial service providers. In the context of the Southeast Asian financial landscape, open banking is widely considered as a lifeline to financial inclusion that can address the needs of an estimated 225 million people who lack access to a financial account and more than 350 million people who do not have access to formal credit. How Can Open Banking Help? Open banking unlocks a world of possibilities for both traditional financial institutions such as banks and fintech startups. This increased competition and innovation will drive the development of new, innovative financial services that cater to the diverse needs of the Southeast population, currently estimated at nearly 700 million. By leveraging open banking APIs, fintech companies can develop accessible and affordable financial services, such as digital wallets, microloans, and insurance products. These services can be tailored to the specific needs of underserved populations, empowering them to participate in the formal financial system and improve their financial well-being What is SAMi and How Can It Facilitate Open Banking? SAMi or Smart API Marketplace, is designed to assisting banks in their journey toward open banking by offering a comprehensive, user-friendly API portal. SAMi empowers API developers, product managers, and external partners to effortlessly create, manage, and track API products. Through its intuitive interface, SAMi enables banks to: Generate API Proxies Easily create and manage API proxies for seamless integration of banking services across platforms, enabling banks to offer diverse services directly through their existing systems. Monetize Digital Assets SAMi’s analytics enable banks to monitor API usage and performance, offering insights to optimize and monetize digital assets. By tracking API-product subscriptions, banks can identify revenue streams and explore new business opportunities. Accelerate Digital Integration Like the approach taken by leading banks, SAMi helps streamline the integration of banking services with partner platforms, enabling faster and more efficient digital onboarding processes. This not only boosts productivity but also enhances the overall customer journey by simplifying complex transactions. Click the video below to learn more about the benefits of SAMi. To schedule a consultation or demo, email Michael Pagsisihan, SID Global Solutions Vice President – Partnerships and Business Development for SEA and ANZ, at [email protected]. #OpenBanking #DigitalTransformation #SAMi #SIDGS

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[NEW PRODUCT EXPANSION] equipifi brings you BNPL 2.0, now with pre-purchase BNPL! 📣📣📣📣 Plan Your Purchase gives account holders access to the funds they need from their financial institution before they go shopping. Together with equipifi's flagship post-purchase debit card BNPL product, Split Your Payments, financial institutions can offer account holders purchase financing on-the-go. 🏌‍♂️No credit check 🏌‍♂️No need to apply 🏌‍♂️No manual intervention from the FI Just smart, personalized, pre-qualified offers for your eligible account holders, already in their banking app. "There are many moments in an account holder's lifetime when timely access to small loans make a big difference," said Bryce Deeney, co-founder and CEO of equipifi. "By streamlining the loan acceptance process and positioning it in the digital banking experience, Plan Your Purchase helps financial institutions give account holders access to cash flow they already qualify for wherever and whenever they need it." "The success of our post purchase BNPL solution has shown us that flexible financing is a service our members want, and want from us," said Robert Thompson, Chief Lending Officer at Eagle Community Credit Union. "Plan Your Purchase helps us further anticipate their budgeting and purchasing needs, and show them we care." 👉 Check out Pre-Purchase BNPL: https://lnkd.in/g9g7puqK 👉 Read the Press Release: https://lnkd.in/g3ejitXu #buynowpaylater #bnpl #productlaunch #creditunions #creditunion #banking #payments #debit #fintech #jackhenry #affirm

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Open Banking (OB) is upending the #payments value chain. But not by itself. It’s strategic partnerships leading the transformation and illustrating the new landscape. One of the most promising was just announced. Let’s take a look. OB is a simple concept. But it’s not a variation of #banking, as the name might imply. In fact, it starts with banks but it goes far beyond, influencing fintech, payments and #ecommerce. The basic idea is opening data and making it available via modern infrastructure rails called APIs. So, when Unzer, a leading provider of payment and software solutions, announced a strategic partnership on OB with Mastercard a few days ago, I had a few people asking me: how do a #fintech and one of the big schemes connect to OB? And where are the banks? Here’s the explainer. There are two main reasons why OB is relevant for players like Unzer and Mastercard: -  OB not only connects merchants with consumers in a direct way, but it can also initiate payments directly from bank accounts. And all this with increased security and an enhanced customer experience. -  As more people are moving their everyday purchases online (and increasingly mobile-first), being able to securely tap into their bank accounts is not nice-to-have but an absolute must. Add these two conditions together and you have a game-changing combination. Affecting both Unzer and Mastercard but in different ways. To understand how we need to look at the new value chain, which consists of 5 layers: 1.    At the very bottom we have the banks, which provide access to the existing payment rails and infrastructure (SEPA in Europe). Based on PSD2 anyone (third parties meeting certain criteria) could connect to banks. But it’s a big and cumbersome exercise and means connecting to hundreds or thousands of banks. 2.    As a result, a second layer of providers is undertaking to do this work and build the connectivity infrastructure. Mastercard Open Banking is among the leading ones. 3.    Players like Unzer connect to Mastercard to get access not only to the connectivity, but also to a series of tools and services built on top (i.e. data intelligence, risk tools, etc). 4.    Then merchants come into the picture. There is an increasing need to be able to offer their clients reliable, cost-efficient, secure-proof solutions. Merchant partners like Unzer enable this access. 5.    At the top of the hierarchy is the consumer. Pay-by-bank or similar names enable them to pay for goods directly from their account. But it’s literally the tip of the iceberg: a simple transaction goes several layers deep. The next-gen payments landscape is here. And it’s being shaped by multi-rail payment capabilities in which real-time, A2A payments facilitated by OB will play a critical role. Unzer and Mastercard are showing the way. Opinions: my own, Graphic sources: Panagiotis Kriaris, Mastercard I am starting a newsletter! Subscribe here: https://lnkd.in/dkqhnxdg

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Did you know that you can send money to any bank or e-Wallet account using the Cash Teller Machine (CTM)? No need to go to a bank branch to deposit funds to your account. This feature of the CTM is especially useful for banks that has few physical branches or none at all, like digital banks and neo-banks. As the deployment of our CTM expands to more areas, especially in the provinces, it will become easier for account owners of digital banks, such Tonik, UnionDigital Bank, UNO Digital Bank, GoTyme Bank, SeaBank Philippines, Inc. (A Rural Bank), OwnBank, as well as many other banks to deposit funds into their accounts. When more people have accessible means to deposit to their accounts, they can save, invest, and contribute to the economy. TraXion Tech Inc. #digitalbanking #phygital #financialinstitutions #financialinclusion #ruralbanking #cooperative #fintech #digitalpilipinas #atm #cashtech #openbanking #openfinance #QRPH

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APIs are indeed your back stage warriors which make the frontline look powerful! Having traversed the tech to presales career path in fintech for last 13 years - I totally agree with the 10 elements so well articulated in this post. Great write up from my friend Aditya Saxena | McKinsey & Company #fintech #learning #apis #techenablers

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Southeast Asia Embraces Open Banking Open banking is rapidly growing in Southeast Asia, driven by a thriving fintech ecosystem, increased consumer demand for digital financial services, and active API development by banks. However, challenges such as diverse regulations, lack of standardization, and consumer trust concerns remain. Several countries have taken proactive steps to accelerate open banking adoption, including Thailand, Singapore, Malaysia, Indonesia, Vietnam, and the Philippines. Despite these challenges, the future of open banking in Southeast Asia appears promising, with the potential to revolutionize the financial landscape in the region. Read the full article here to find out more: https://lnkd.in/eEry5xhK Operating overseas requires a bank account. IFB offers comprehensive services for opening business and personal checking accounts, from consultations on choosing financial institutions to providing clients with requisites. Digital banking services are also available, including EMI (Electronic Money Institution) licensing for issuing virtual currency, which helps diversify risks and reduce operational costs. An EMI license also allows businesses to process payments and conduct other standard financial operations. Our consultants can help you select the appropriate solution for managing fiat electronic currency. Contact us today! For details: [email protected] More info: ifbusiness.uk #IFB #Fintech #Banking #Asia 

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Last night, I was reading BPC Banking Technologies’ report titled THE ANATOMY OF THE NEW FRAUDSTER. I’ll leave a link to the report in comments, and key points below. 🔺 FRAUD VS PAYMENT LANDSCAPE According to McKinsey & Company’s Global Payments Report for 2023, payments revenues grew by 11% in 2022, reaching a record high of over $2.2 trillion. According to LexisNexis, the global payments market is estimated to be worth $2.9 trillion by 2030 but will lose $274.1 billion in 2023 in total fraud. According to statistics from Federal Trade Commission for 2024, credit cards are the highest means of fraud, yet bank transfer and payment has the largest volume, followed by the cryptocurrency. 🔺 MERCHANT DYNAMICS Over 77% merchants now leverage third-party marketplaces like Amazon, eBay, and Alibaba to sell their products and services. 🔺 MODUS OPERANDI AND ROLE OF TECHNOLOGY The digital landscape is witnessing emergence of sophisticated fraud tactics such as phishing, pharming, whaling attacks, friendly fraud, transaction laundering, APP (authorised push payment), application fraud, counterfeit fraud, social media fraud. Utilising GenAI, fraudsters can effortlessly craft #syntheticidentities and produce #deepfakes. 🔺 CARD NOT PRESENT CNP (Card Not Present) Fraud increased significantly over recent years and according to the latest Nilson Report, global card fraud losses exceeded $32 billion in 2021. 🔺 SCAMS Authorised push-payment (APP) fraud poses a significant challenge as fraudsters manipulate victims into authorising payments under false pretences, including investment and #romancescams. UK Finance reports a staggering loss of £500 million to #APPfraud in 2023 alone. Fraudsters have shifted modus operandi from defrauding elderly consumers to targeting #millennials, though the elderly suffer higher median losses. 🔺 BALANCING CUSTOMERS EXPECTATIONS VS FRAUD PREVENTION #Falsepositives remain a challenge, while customers expects frictionless experiences. During the 2022 holiday season, merchants turned away an estimated $24 billion in legitimate orders due to fear of #fraud. Yet, according to a survey by Fezerai, 77% respondents would leave their bank if they do not receive a #refund for a scam, while 79% respondents aged 25 to 44 years would leave the bank if it ever blocked a legitimate transaction, even if the matter is quickly resolved. 🔺 UK FOCUS In 2023, the “Fraud & Financial Crime” magazine by Raconteur highlighted that the UK has become a focal point for international financial crime. The severity of this issue prompted the UK government to officially classify fraud as a national security threat. Once again, link in comments & I've attached some screenshots from the report. ** 👉 If you found this helpful, remember to follow Vinita Ramtri to keep your mind agile and aware. And please be #fraudware and #fraudalert.

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Case study of the rise of the digital bank Nubank. interesting lessons here especially the idea of helping the under bank build their creditworthiness over time through small loans that gradual rise over time with repayment behavior. #banks #cx #customerexperience #digitalbanks

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What caught my eye this week is the FinTech Futures Banking Tech Insights: Limitless Banking panel and roundtable event which I had the pleasure to attend yesterday. It was an exciting and informative experience with excellent participation and great audience. ❗ What were the topics featured? ✅ How can we define Limitless Banking? ✅ What components does a modern backend need to enable limitless banking? ✅ How emerging technologies are shaping the future of financial services? ✅ What products and services do customers want from the bank of the future? ⚠ What are the main challenges on the path to achieve Limitless Banking? 👨‍🔧 Realigning customer needs and expectations to the evolution of technological advancements 👨‍🔧 Realigning the already existing legacy tech stacks to the new technologies 👨‍🔧 Constant adaptation of banks' internal structures to the rapidly changing technical environment 👨‍🔧 Constantly evolving products and services in search of best-in-class customer journeys 👨‍🔧 Enabling emerging technologies (GenAI) to seamlessly structure and build financial products and services ❓ What could be the potential solutions to achieve Limitless Banking? 1️⃣ Keep the focus on the banking core and the streamlined functionality 2️⃣ Prioritise personalisation for acquiring, retaining and frequently engaging customers 3️⃣ Explore the utilisation of agents and digital avatars when creating future products (but keep this under regulated framework and requirements) To sum up, enabling Limitless Banking will have its fair amount of challenges going forward but the closer we move on to achieving it, the better outcomes will follow for customers and financial players resulting in a win-win situation for both. Food for thought ... 💡 Dave and Dharm Demystify Dharmesh Mistry Dave Wallace Tanya Andreasyan Paul Hindle Ebrahim Daji Tim Silversides Chris Waring Joe Thompson Kam Chana 🦔 Malcolm 🦔 Seagrave Conrad Ford Giulia Anselmo Sarat Pediredla 🦔 #fintech #banking #tech #technologies #financialservices #financialproducts #financialservices #banks #bankingproducts #genai #financialinstitutions #personalisation #agents #digitalavatars #financialregulation #techstacks Credits: FinTech Futures; Informa; hedgehog lab

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Interesting article and nice scheme explaining the funds flow. I am interested how QR payment fees by MC compare to POS payment fees - is MC charging the same from merchants or there are incentives to push QR to Merchants (or opposite extra charges by MC for “modern” tech). Also, QRs by MC must be read by user’s banking or ewallet APPs, which is a potential challenge on deployment of tech and integration with banking and ewallet protocols

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Open banking in Southeast Asia refers to the financial innovation that allows third-party financial service providers to access consumer banking, transaction, and other financial data through APIs (Application Programming Interfaces) provided by banks. This fosters competition, innovation, and collaboration in the financial sector, potentially leading to better services and products for consumers.

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#embeddedfinance #neobank Is it possible for neobank to be lovable by customers and be profitable? Did it work to pivot from p2p lender to digital bank? Is it possible to find the niche in well saturated highly competitive market? All three answers: Yes! How? Have a look at UK neobank Zopa started in 2020: - £15.8 m profit before tax for the full year 2023; - Deposit base was up 14.9% to £3.4 billion; - Loans on balance were up 27.3% to £2.7 billion; - Cost to income decreased from 45.8% to 38.7%; - Customer base grew 30%; - NPS is 72. What is the value proposition focus? - Lending (consumer loans, credit cards, car finance); - Savings (including smart investing with tax allowances) - Embedded Finance via white label partnerships. #embeddedfinance #embeddedlending #Zopa #customercentricity #digitalbanking #NPS #consumerfinance #savings #ZopaBank #fintechpledge

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🔥 MUST READ🔥 Instant Cross-Border Mobile Payments are Becoming a Reality in SE Asia Simple is always best, and one way to get immediate cross-border payments is to connect Asia’s wildly successful QR-based instant payment systems (IPS). The problem is that connecting IPSs is anything but simple, and that’s where the BIS’s Project Nexus and its standardized approach is making a breakthrough. Southeast Asia is a hotspot for these bilateral linkages, with 13 person-to-merchant (P2M) QR payment linkages and four person-to-person (P2P) payment linkages as of May 2024. The rationale for why this is happening in SE Asia is clear. The entire region has its sites set on growth, and with SMEs as a dominant force in their economies, mobile payments are simply practical. And the next step is mind-blowingly large: connecting them all to India’s UPI! 👉TAKEAWAYS (FULL PDF ON LINK BELOW) 🔹 Improving cross-border payments: Nexus aims to improve the speed, cost, transparency, and access to cross-border payments with payments that reach their destination in 60 seconds or less. 🔹 Linking IPS multilateral: Some countries already link their IPS, but single bilateral links' slow and complex building makes scaling challenging. 🔹 Standardizing the scheme: Nexus eases IPS interlinking by standardizing the way that IPS connect to each other. 🔹 Speed: Nexus will enable cross-border payments in seconds, 24/7/365, as most IPS process domestic payments within 30 seconds. 🔹 Cost: Nexus payments should fall within the G20 and UN SDG target of costing the Sender less than 3% of the value of the payment. 🔹 Access: Nexus provides access to cross-border payments to any bank or non-bank PSPs that are eligible to join their domestic IPS. 🔹 Transparency: Nexus gives the Sender transparency about how much it will cost them to pay a specific amount to the Recipient 👊STRAIGHT TALK👊 Nexus isn’t just for SE Asia, with some 70 nations using IPSs there is a lot of room for growth in cross-border mobile payments. The next step for Project Nexus is truly remarkable and I’ll reproduce it in full: ”Phase four will see Bank Negara Malaysia, Bangko Sentral ng Pilipinas, the Monetary Authority of Singapore, the Bank of Thailand and domestic IPS operators joined by the Reserve Bank of India, expanding the potential user base to India's Unified Payments Interface (UPI), the world's largest IPS.” So India’s UPI the world's largest IPS will be connected with most of SE Asia which means that roughly 25% of the world’s population will have cross-border instant payments! Mind-blown yet? This fintech revolution is brought to you by Asia! What do you think? ✍️Friends, don't let friends go without comments! ♻️Reposters you are the best! Thanks so much for sharing! ---------------------- 💥 My name is Rich, I’m not an AI! 🔺 hashtag #Fintech, hashtag #AI and hashtag #Tech at the speed of hashtag #Asia and hashtag #China.

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Interesting to see digital banks take top spots in markets like Philippines and Indonesia. In these large and populous countries with huge unbanked/underbanked population, digital banks are making amazing in roads. #Maya continues to lead the pack among digital banks for the second year in this list for Philippines- thanks to our employees, customers & partners.

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Bank for International Settlements – BIS’s Project Nexus “has produced a comprehensive blueprint for standardising the way that domestic #IPS connect, lowering the obstacles for countries that wish to offer instant #crossborder #payments. .. This latest 2024 report is the result of a year-long collaboration with the central banks and payment system operators of Indonesia, Malaysia, Singapore, the Philippines and Thailand. [The report] describes the: ➡ governance, scheme and oversight arrangements that accommodate the regulatory differences between countries while ensuring appropriate risk management, safety, efficiency and resilience for all Nexus payments; ➡ business and revenue model for Nexus to ensure financial self-sufficiency and ensure that key industry participants have strong incentives to join Nexus; and ➡ technology architecture and operational model, building on the insights from the software developed in the 2022 proof of concept. More than 70 countries already have instant (or "fast") payment systems that allow people to send money to each other within seconds. However, sending money abroad is often still slow and expensive. Connecting these domestic payment systems internationally could improve the speed, cost and transparency of cross-border payments. Nexus is designed to standardise the way that these systems connect to each other. Rather than a payment system operator building custom connections for every new country that it connects to, the operator can make one connection to the Nexus platform. This single connection allows an instant payments system to reach all other countries in the network. Nexus could significantly accelerate the growth of instant cross-border payments The report is [to be] complemented by in-depth technical guides that cover implementation guidelines for each type of participant in Nexus along with ISO 20022 message and API specifications.” Project Nexus’ webpage: https://docs.bis.org/nexus Project Nexus’ 2024 report: https://lnkd.in/dcGJcTX7 #realtime #RTP #immediatepayments #crossborderpayments #innovation Sam Boboev Nafis Alam Panagiotis Kriaris Nicolas Pinto Prasanna Lohar Sharat Chandra Sudin Baraokar

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When FACE was formed. The objective was simple to build strong fintech ecosystem in India I believe it has made lot of difference by working on common challenges. If you are build fintech in India. be part of Fintech Association for Consumer Empowerment (FACE) Sugandh Saxena

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