Worldwide, there is a growing push to have open banking third-party payment initiation (3PPI) driven by regulators to make it possible for technology-led services and apps to initiate payments directly on behalf of customers, with consent. In a financial inclusion setting, India delivered this model to the ecosystem through its Unified Payments Interface (UPI), which led to the phenomenal growth in adoption of digital payments on faster payments rails using a design balanced to deliver convenience and consumer protection.

Mojaloop Foundation has been working with Sponsor member Google to deliver a PISP (Payment Initiation Service Provider) blueprint and open source codebase that is aligned to the design patterns in this white paper. This is an exciting development that allows a new category of ecosystem participants to connect directly, creating an environment that helps innovators thrive and deliver valuable, last-mile services that will drive the adoption of digital payments using instant payments rails.

Download “Design Principles for Third-Party Initiation in Real-Time Payment Systems” at the link below.

Consultative Group to Assist the Poor (CGAP) is a renowned global partnership of more than 30 leading development organizations that works to advance the lives of underserved people through financial inclusion. They recently published research highlighting that PISP is a critical “financial inclusion by design” component in an Open Banking regime. An open source approach can enable best practices in an accelerated manner and allow lessons to be shared globally. The Mojaloop Foundation believes this approach creates a mechanism for regulators, payment schemes and the developer ecosystem to co-innovate with a global audience to deliver a financial inclusion strategy to market reality. This approach powers a vibrant one-loop ecosystem with significant network benefits for all, making money movement fast, easy and safe.

Enabling third-party access for the wider ecosystem means everyone benefits. In markets where PISP is enabled to effectively balance customer experience, transaction pricing and security, it can create innovations that can truly tackle financial inclusion. We are excited to see the possibilities of inclusive service design that can be enabled by PISP.

For more, read the Design Principles for Third-Party Initiation in Real-Time Payment Systems whitepaper. Click this link and follow the below navigation to access the full paper.

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About the Author

Paula Hunter, Executive Director, Mojaloop Foundation

Paula Hunter manages the day-to-day affairs of the Mojaloop Foundation, with responsibility for strategic planning and direction, membership development, budgeting, evangelism for the Foundation and its mission and outreach to strategic partners.