The growth of the digital economy has driven the rapid rise of Mobile Wallet Platforms and Peer-to-Peer (P2P) clearing networks (such as Venmo, Cash App, or mobile money systems in emerging markets).

Early-stage mobile wallets operate as closed-loop systems, where transactions between users on the same platform clear instantly on the provider’s internal corporate database without requiring an interbank reserve transfer: [1]

User Alpha sends funds -> Wallet Provider updates internal account ledger -> User Beta receives balance instantly

While this internal clearing model enables fast, zero-cost transfers, it isolates capital within separate platforms. To expand market efficiency, central banks implement open payment switches that connect competing wallets directly to national interbank clearing networks. [1]