Uneven Regulations in Payments

BAFT has released the white paper, “Uneven Regulations in the Payments Industry”, to shed light on the disparities and challenges in regulatory frameworks governing the global payments landscape. This comprehensive publication offers a deep dive into the complexities of payment regulation and its implications for financial institutions, fintech firms, regulators, and consumers alike.

This white paper presents a comprehensive analysis of payment regulations by examining the different approaches adopted by regulatory bodies in various jurisdictions across the globe. It covers a broad range of regulatory frameworks governing various payment instruments, including digital wallets, real-time payments, cross-border transactions, and cards. The paper also provides insights into the emerging fintech regulations and traditional banking regulations that govern these payment methods.

It also explores the fragmentation, duplicative requirements, and conflicting mandates in existing regulation that hinder interoperability and innovation in the payments ecosystem. It offers an analysis of the compliance burden, operational costs, and market access barriers imposed by divergent regulatory requirements and how these uneven regulations impact financial institutions, fintech firms, payment service providers, and consumers. It also discusses the implications for competition, consumer protection, and financial inclusion in an increasingly globalized payments landscape.

The paper explores ways in which regulatory bodies can collaborate at the domestic, regional, and international levels to promote regulatory convergence and streamline compliance processes. It also provides practical recommendations to enhance the efficiency and effectiveness of payment regulation. Finally, the paper calls for industry stakeholders to work towards creating an inclusive, competitive, and fair environment for consumers, while still maintaining provider profitability and sustainability.

Access the White Paper Below