Digital payments infrastructure is becoming more sophisticated and technologically advanced, with this the underlying infrastructure becomes more complex. For a seamless user experience, the digital payment system often integrates various service providers, including banks, merchants, payment processors, and technology providers. The new complexities arise from interdependencies that come with the higher reliance on third-party providers, and cross-border links. The digital payment infrastructure majorly depends on electricity, computer software/hardware, and telecommunications. Therefore, any instance of a prolonged outage or business failure of third-party services leads to operational risks and challenges to resilience. Higher operational failure has resulted in disrupted monetary operations, settlement of transactions, failure of urgent payments, and loss of public trust. According to the analysis, the Accenture payment failures for several banks have already risen to 2%, up from less than 1% before the pandemic. However, the use of real-time gross settlement (RTGS) helps in immediately transferring and settling the funds upon initiation. The RTGS has significantly mitigated the risk of operational failure in digital payments by reducing the time window for potential system outages or interruptions, as transactions are settled instantly.
Digital infrastructure is the conglomeration of various systems, technologies, and processes, that conducts the digital transaction of real money between parties. Digital payments have rapidly penetrated the world, it is one of the common payment methods used by consumers, businesses, and even the government sector. Various technologies have been integrated into this infrastructure to boost the efficiency of digital payments.
Governments financial institutions, and technology companies have been actively promoting financial inclusion in developing countries. Digital payment services are playing a crucial role in providing banking services to the unbanked population.
The digital payment infrastructure is a rapidly growing area and has huge potential for more innovation and growth. Consumers and businesses are looking forward to better digital payment solutions that meet all of their demands as digital payment has grown more common around the world. With the growing need for faster, more efficient, and more secure payment choices, consumers and businesses are looking forward to better digital payment solutions that meet all of their needs. The greater demand for seamless experience requires the need for overcoming the redundancy in the existing models. Therefore, the new product and service offerings, advanced technologies, and points for payment initiation have become a crucial part of digital payment infrastructure development. Building operational resilience in payment systems entails developing the ability to identify both inside and outside sources of risk as well as anticipating and planning for large-scale or severe outages.
