E-payments: Survival of the slickest

Turning money and small-value payments into digital form doesn’t interest the banks – it’s against their interests and too expensive. Into the vacuum have stepped hundreds of payment schemes, many of them claiming they have found the Holy Grail. These boasts are premature. Some ideas are elegant but don’t have critical mass. Worse still, they rely on those indifferent beasts, the banks. Find your way through the Darwinian jungle with the help of David Shirreff

An educated Martian, looking at the way planet Earth has organized its payment and settlement systems, would find his fingers or sense pods itching to rip them up and start again. Unfortunately these payment systems are not going to benefit from a Martian invasion anytime soon. There is so much vested interest in keeping large chunks of the status quo that change is slow. The main inertia comes from the banks: the beginning and end of practically every transaction, be it online or offline.

Thanks for your interest in Euromoney!
To unlock this article: