Payment outages: Experiences and issues

Major operational incidents in payment systems suggest the need to improve their resiliency. As payment infrastructures become more digital, integrated and interdependent, with users demanding real-time and uninterrupted services, a higher degree of resilience is required. Risks that could trigger m...

Full description

Saved in:
Bibliographic Details
Published in:Journal of payments strategy & systems 2022-03, Vol.16 (2), p.170-180
Main Authors: Khiaonarong, Tanai, Leinonen, Harry, Rizaldy, Ryan
Format: Article
Language:English
Subjects:
Business Continuity
Disasters
Operational Resilience
Payment Systems
Risks
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Major operational incidents in payment systems suggest the need to improve their resiliency. As payment infrastructures become more digital, integrated and interdependent, with users demanding real-time and uninterrupted services, a higher degree of resilience is required. Risks that could trigger major disruptions have become more acute given the rise in power outages, cyber incidents and natural disasters. International experiences suggest the need to strengthen (1) reliability objectives, (2) redundancies, (3) assessment of critical service providers, (4) endpoint security and (5) alternative arrangements. A comprehensive restructuring of resiliency plans — across the entire payment value chain — is also needed. This paper draws lessons from recent operational incidents to suggest ways in which operational risk management frameworks could be strengthened given evolving payment systems, increasing user expectations, developing technologies and varying country circumstances. The objective is to share observations from international experiences and explore operational and developmental issues to facilitating the stronger operational resilience of existing and future payment systems.
ISSN:1750-1806
1750-1814
1750-1814
DOI:10.69554/GDOC9518