Preface viii About the Editors xi Acknowledgements xiii 1. Payments Explained Payments are Getting Political Again 6 Money: A History of Gods and Codes 11 Payments Explained 14 From Barter to App - How Payments Have Changed 17 Do We Still Need to Pay? 21 How ACH and Real-Time Payments Clearing and Settlement Works 23 Payments as a Service 26 The New Emerging Banks and Their Role in Payments 28 The Payments Race 31 PayTech Regulation Trends 34 An Innovative Local Payments Method in an Ancient Land 37 2. Payment System Infrastructures and Money Transfer Technologies The Convergence of Card Payments and Bank Payments 46 Instant Payments: A New Deal for the Payments Market? 49 PIN on Mobile - A Pivotal Moment for Payments 51 PayTech in the Cloud 54 The Rise of a Super-Correspondent Banking Network 56 Why Distinctions within Mobile Wallets and Tokenization Matter 59 The Future is Already Here; It is Just Not Evenly Distributed 61 PSD2 Open Banking: The Challenges of Third-Party Provider Identity and Regulatory Checking 64 Taking PayTech to the Villages of India 68 3. Payments Regulation and Compliance How Payments Regulation and Compliance Can Create a Better Future 74 Refining the Collective Responsibility for Compliance 78 Can Operational Agility Grow Payments in the New Online Platform Marketplaces? 81 The Hidden Value of Greater Standardization for the EU-Wide FinTech Market 84 Is Europe a Good Example of Open Banking? 86 Taking Back the Power: Regulations in the EU are Changing the Face of Banking 88 Achieving Control Effectiveness and Sustainable Compliance Using Nine Factors 91 Money Laundering Laws, Technology and Keeping Up with Criminals 94 Dynamic Regulation Readiness - Implementing the 5th Anti-Money Laundering Directive 97 eKYC: The Next Mountain for e-Businesses to Climb 100 AML Systems After Madoff: Ponzi-Identification Using "Complexity" 102 4. Blockchain Regulation Around the World Understanding Cryptocurrencies, Blockchain Technology and Regulations 110 Blockchain, Cryptocurrencies and How They Fit Within Current Payments Regulation 114 Blockchain and Beyond 117 Will Central Banks Adopt the New World Economy of Cryptocurrencies? 119 The Case for a National Cryptocurrency 122 Regulation and the Future of Blockchain: Which Approach Will Succeed? 124 Web 3.0 - The Internet of Value 127 Blockchain - An Elixir for Anti-Money Laundering? 129 Facilitating Online Crypto-Payments Now and in the Future 132 A New Law for Derivatives Markets and the Use of Smart Contracts 134 PayTech and Blockchain: Adjusting for Security and Risk 137 Cryptocommodities: An Essential Element of Decentralized Payments 140 5. Payments in Practice The Perspective of a Passionate Payments CEO 148 Plugging the Data Black Hole: How Mobile Self-Checkout Can Help Revive the High Street 152 How UnionPay Quick Pass is Beating Alipay and WeChat Pay in China 155 How Payment Agility and Cash-for-Carbon Can Solve a Global Problem for Mankind 158 Revolutionizing the Retail Industry Through Integrated Payments Systems 162 Asset Management and Payments in India - So Near and Yet So Far 164 Exploiting the Value of Data Embedded in Payments Systems 167 Reinventing the Customer Experience by Focusing on the After-Payment Emotional Experience 170 How Open Banking and Payment Touchpoints Will Save Banks 172 Why Personal Financial Management Will Be Embedded Into the Next Generation of Payments 175 How Helping Microbusinesses Accept Digital Payments Could Transform Kenya's Economy and Enhance Inclusion 178 How Decentralization Can Create a Customer-Centric Ecosystem 182 6. Blueprint for Change A Blueprint for Change 188 Accelerating the Adoption of PayTech Innovations 192 How to Build a Successful PayTech Product 195 The Future of Digital Payments Market Infrastructures 198 It's Money, Jim, But Not as We Know It 201 Payments as Open Business Banking Enabler for the Gig Economy 206 The Financial Arms Race: The Game with No Rules 209 How Network Paradigms Can Lead to New Payments Innovations 212 It's the Ecosystem, Stupid! Keeping Ahead in a Payments Ecosystem 215 Mobile Money: Creating a Cash-Light Africa to Solve the Financial Inclusion Problem 217 Back to the Future: A Miraculous Time-Trip Through the Future, Present and Past of Payments 222 Fifteen Ways in Which Our Digital Future Will be Shaped by PayTech 225 List of Contributors 229 Index 236
SUSANNE CHISHTI is the CEO of FINTECH Circle, Europe's 1st Angel Network focused on fintech investments and Founder of the FINTECH Circle Institute, the leading fintech learning platform offering Innovation Workshops to C-level executives and fintech and entrepreneurship courses. She is also the Co-Editor of the bestsellers The FinTech Book, The WealthTech Book and The InsurTech Book, all published by Wiley. Susanne is considered as one of the leading fintech influencers globally and advisor to top management in financial services. TONY CRADDOCK is the Founder and Director General of the Emerging Payments Association, the UK's largest payments trade association. Credited with coining the term 'PayTech,' Tony is a popular commentator, speaker and writer on PayTech and is the architect of The Emerging Payments Academy, the Emerging Payments Awards, the EPA Inclusion Accreditation Service, The Inclusion Foundation and the PAY360 conference. ROBERT COURTNEIDGE is a Payments Lawyer and the CEO of Moorwand, Ltd, an international provider of payment services. He has more than 27 years of experience in cards and payment systems and works closely with The Payments Services Regulator, HM Treasury and the Financial Conduct Authority. Robert speaks and writes extensively on cards payments, financial technology and current legal and regulatory issues. MARKOS ZACHARIADIS is Full Professor and Chair in Financial Technology (FinTech) and Information Systems at the Alliance Manchester Business School, University of Manchester, a Council member at the World Economic Forum, and a FinTech Research Fellow at the University of Cambridge. His research has been published in top academic journals and books. A board advisor, mentor and international keynote speaker, Markos has been invited to present his research insights to various international conferences, governments and global organizations. He holds an MSc and PhD from the London School of Economics.