How interoperable digital public infrastructure can transform fast payments

Fast Payment Systems (FPS) have transformed how people, businesses, and governments transact, making payments faster, more affordable, and increasingly accessible. In many countries, they have become central pillars of digital financial ecosystems, powering inclusion and innovation at scale.

As more people come online and services grow more complex, there is a growing opportunity to take FPS even further by integrating with other components of Digital Public Infrastructure (DPI) such as digital identity and trusted data exchange.  This could enhance user experience, streamline onboarding, strengthen security, and unlock a wider set of inclusive use cases.

Unlocking the Power of Integration

DPI which includes digital identity, fast payments, and trusted data exchange, provides a powerful foundation to accelerate and expand the impact of digital finance. Each component adds value on its own, but their integration can take it to the next level.

When people can use a secure digital ID to open accounts, authorize payments, and share verified data across providers, they gain greater control and access. At the same time, connecting payment systems to identity and data platforms allows providers to strengthen trust, reduce costs, and serve more users through simpler, faster processes.

This integration goes beyond streamlining existing services. It opens the door to entirely new solutions, delivery models, and use cases that make digital finance more inclusive, secure, and accessible for everyone.

Connecting Digital Identity and Fast Payments

Digital identity and fast payment systems each hold immense power to transform financial access. On their own, they enable greater reach, lower costs, and real-time convenience. But when designed to work together, their combined potential grows exponentially.  Currently, FPS and Digital Identity often operate in parallel but are largely not integrated. While both hold significant potential to enhance financial inclusion and efficiency, their silos limit their full impact. Digital identity can simplify access to fast payments, while FPS can serve as a trusted channel for identity-linked services, from onboarding to transaction authorization. Integration between the two creates the foundation for more inclusive, secure, and user-centered financial ecosystems.

To support this vision, we will need new foundational services and capabilities:

• The Payments Identity Credential (PIC) as a bundle of verifiable credentials issued by a user’s payment service provider and complemented with key attributes from the national digital ID system. It brings together account information, identity verification data, and user consent preferences into a secure, portable credential. It is portable across platforms and providers, enabling users to access services with greater ease and control.
• The Trusted Access and Credentialing Hub (TACH) to perform three core functions. First, establish the trust framework that links fast payment systems and digital ID platforms, ensuring that identity and payment credentials can be securely recognized and validated across systems. Second, act as an orchestrator, managing interactions between service providers, identity systems, and payment platforms in real time. Third, govern the lifecycle of the Payments Identity Credential by overseeing its creation, binding it to verified sources, and enabling its secure and consent-based use across financial services.

Together, PIC and TACH make interoperability practical. They allow for seamless onboarding, secure transactions, and flexible data exchange, while adapting to a variety of country contexts and existing infrastructures.

Enabling New Possibilities Through Interoperability between FPS and Digital ID

By serving as a trusted, portable credential, PIC makes it easier for users to access financial services while reducing friction for providers. For example:

• Fast onboarding: Individuals can open accounts quickly using verifiable credentials, with fewer documentation hurdles and no need to repeat KYC processes across providers.
• Secure transactions: Payment credentials linked to a verified identity can be validated in real time, helping prevent fraud and reduce errors in fund transfers.
• Unified access: A single PIC enables users to access and manage services across multiple payment service providers, simplifying the customer experience.
• Offline functionality: Credentials stored on a device can authorize transactions even without a live connection, extending the reach of digital payments to underserved areas.
• Targeted public services: Social benefits or subsidies can be delivered as digital credentials, traceable and redeemable on a range of devices, including feature phones.
   

Toward a More Inclusive and Connected Future

Bringing together digital identity, fast payments, and consent-based data exchange into a coherent, interoperable infrastructure benefits everyone. Users gain faster access and greater control. Service providers lower costs and streamline compliance. Governments can deliver public services more effectively. And innovators are empowered to build the next generation of inclusive financial tools.

By using common building blocks such as the Payments Identity Credential and the Trusted Access and Credentialing Hub, countries can move beyond fragmentation and toward a shared foundation for trusted and seamless service delivery. This shift not only reduces duplication and complexity but also creates the conditions for scalable innovation, whether through embedded finance, AI-powered applications, or cross-border digital services.

Integrating TACH and Payment Identity Credentials into a jurisdiction requires clear legal recognition and consistent form factor standards. These tools must be formally acknowledged for key functions such as KYC, fraud prevention, and authentication, and Verifiable Credentials should follow established standards to ensure interoperability across sectors and seamless integration into the digital financial ecosystem.

Shared governance between Digital ID and FPS operators is also essential. Policies should define clear roles and responsibilities to support collaborative management focused on security, inclusion, and trust. This framework must also address access, pricing, and interoperability, while embedding strong safeguards for data privacy, user consent, and cybersecurity to ensure long-term trust and system resilience. An early preview of this work and its core concepts have been articulated here. Next steps include publishing a white paper outlining legal, regulatory, and technical considerations, along with further exploratory work to support country-level implementation.

The opportunity is clear. By building digital public infrastructure that is connected, inclusive, and interoperable by design, we can transform fast payments from siloed systems into the foundation of more equitable, efficient, and resilient digital economies.