Learning Objectives:

  • Understand the structure of card networks and acceptance systems.

  • Analyse digital wallets, super-apps, and embedded finance.

  • Identify emerging technologies: tokenisation, QR codes, and NFC.

4.1 Card Networks and Acceptance Systems

The IBS programme covers “Card Networks (Visa, MasterCard, RuPay) and Tokenization” as a core topic . The Uphilos Consultancy course covers “Card schemes and acceptance networks: Examine four-party and three-party models, interchange fees, and acquiring arrangements” .

Card Payment Models:

  • Four-Party Model: Involves cardholder, merchant, issuer bank, and acquirer bank.

  • Three-Party Model: Involves cardholder, merchant, and a single entity acting as both issuer and acquirer (e.g., American Express).

Interchange Fees:

  • Fees paid by the acquirer to the issuer for each transaction.

  • They incentivise issuers to issue cards and build acceptance networks.

  • Regulation of interchange fees varies by jurisdiction.

4.2 Digital Wallets and Super-Apps

The Wharton-Visa programme covers “emerging technologies like open banking, embedded finance, superapps” as key themes shaping the payments landscape . The IBS programme covers “Mobile applications: QR codes and digital wallets” .

Digital Wallets:

  • Applications that store payment credentials and enable contactless and online payments.

  • Examples: Apple Pay, Google Pay, Samsung Pay, and PayPal.

Super-Apps:

  • Platforms that offer a wide range of services (banking, shopping, messaging) within a single application.

  • They aggregate a comprehensive suite of financial and nonfinancial services on a single, secure digital platform.

4.3 Emerging Technologies

The IBS programme covers “Contactless payments: NFC (Near Field Communication) and tokenization” . The GIFT IFI curriculum includes “QR Codes, NFC, and Contactless Payments” .

Tokenisation:

  • Replaces card numbers with unique tokens for security.

  • Reduces the risk of data breaches.

  • Widely used in mobile wallets and contactless payments.

QR Codes:

  • Quick-response codes for payment initiation.

  • Widely used in emerging markets for merchant payments.

NFC (Near-Field Communication):

  • Enables tap-and-pay contactless payments.

  • Used in digital wallets and contactless cards.

4.4 Global Payment Gateways and Platforms

The IBS programme covers “Global payment gateways and platforms: Apple Pay, Samsung Pay, Google Pay, PayPal” . These platforms provide the user interface and backend integration for digital payments. The RUDN University course covers “International payment card systems. International money transfers, system SWIFT” .

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