Finance, Competitiveness, and Innovation Global Practice, World Bank Financial Institutions Group, International Finance Corporation - Innovation in Payments:

Innovations in payments and their consequences on service providers and the overall payments market are also proving to be a unique challenge for central banks in their various statutory roles in payments.3 The regulatory and oversight roles of central banks are already being challenged by the changes in the structure of the payments market resulting from innovations. [...] Central banks worldwide are investigating the many possible options and design features and assessing the potential impact on the financial sector of issuing a CBDC.22 In any case, the existing guidance from the Committee on Payments and Market Infrastructures and World Bank Group on Payment Aspects of Financial Inclusion continues to be relevant and has proven to be effective in advancing financi. [...] Impact of Innovation on the Payments Market 2.1 Changes in the Structure of the Payments Market Innovations and changes in the payment process have prompted major changes in the structure of the market and of the overall financial sector. [...] But the most conspicuous effect of innovation on the structure of the market has been the boost in competition, with the opening of the payments market to non-banks, a downward pressure on payment service fees and real- time payments becoming the new normal. [...] About Innovation and the Market of Payment Services The most conspicuous effect of innovation on the structure of the market has been the boost to competition, with the opening of the payments market to non-banks, a downward pressure on payment service fees and real-time payments becoming the new normal.