The payment ecosystem

This chapter sets the scene for this discussion and lays the foundations for a normative and critical assessment of the regulation, supervision, and oversight of payment and settlement systems throughout the book. It presents the key terminology and categorisations in the tiered structure of payment systems and traces back how central banks came to be at the apex of the payment system pyramid. The chapter then looks into the future and explores the changing payment landscape and the disintermediation of payment chains. More fundamentally, it calls for a rapid transition away from viewing payments as a mechanical process understood only by a select few and invisible to consumers and businesses. It advocates a shift from analysis that is focused solely on the economic efficiency of payment systems to one that brings legal and social considerations to the fore, including accessibility and end-user protection. These considerations should be reflected in the regulatory principles governing the operation of payment systems, going beyond reliability and efficiency to include fairness and inclusive access principles.