AIM Congress In Abu Dhabi: Interoperability Identified As Crucial For A Cashless Future
While emerging markets foresee a future characterized by cashless economies and digital advancement, cash continues to prevail within these regions.
A panel featuring Abdelslam Alaoui Smaili, CEO of Hightech Payment Systems (HPS); Alaa Alrousan, Head of SWIFT in the Middle East and North Africa; Martin Kwame, President of Ghana Fintech and Payments Association; and Darius Alexander, Managing Director of FTI Consulting, a US-based global business advisory firm, examined at the AIM Congress – Abu Dhabi, on 8 April 2025, the significance of digital payments in reshaping financial frameworks worldwide, revitalizing public economies, and promoting cross-border financial inclusion.
On successfully expediting the transition from cash to a digital economy, Smaili remarked, “Cash management entails utilizing the appropriate cash at the correct location and timing, ensuring efficient and secure usage. Currently, it appears that this is not universally practiced.”
Our CEO Abdeslam Alaoui took the stage at @AIM_Congress 2025 in Abu Dhabi to share his vision on “The Future of Payments: Cashless Societies and the Future of Global Transactions.”#Feelgoodaboutpayments pic.twitter.com/JHMxIxNK9s
— HPS (@HPS_worldwide) April 8, 2025
Regarding the dominance of cash in emerging markets, Smaili indicated that outdated systems still utilized by banks, fintechs, and regulators in the payment ecosystem result in a disjointed payments environment lacking interoperability. Additionally, numerous processes that are adaptable for automation remain conducted manually.
Moreover, Smaili emphasized that organizations must increase efforts in data collection for digital payments to thrive in emerging markets. To transition to a cashless economy, digital transactions should be instantaneous, compatible, and secure. Investments in these domains will facilitate more digital transactions, enhancing efficiency and generating value for the populace.
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Lack of Interoperability May Cause the Global GDP to Decline by $6 Trillion by 2030
Expanding on the topic of interoperability, Alrousan stated that while SWIFT ranks among the most extensive financial networks globally, with over 53 million transactions processed daily, users today enjoy a greater variety of payment options due to the proliferation of networks.
With escalating geopolitical tensions and technological advancements, the economic landscape risks becoming fragmented and isolated. Alrousan posits that economies must communicate with one another, and interoperability is integral to SWIFT’s strategy.
He noted that if fragmentation persists, exacerbated by external elements like trade conflicts, by 2030, global GDP may witness a decrease of 1.2% in the best scenario and 6.5% (approximately $6 trillion) in the worst.
Elaborating on efforts to promote interoperability, Alrousan highlighted SWIFT’s partnership with Buna, a cross-border payment initiative led by the Arab Monetary Fund, created to facilitate the integration of the 22 Arab economies, leveraging SWIFT’s network to benefit their central banks and aid economic integration.
He also referenced public-private partnerships, noting that numerous central banks have launched CBDCs, while others are in testing phases. He asserted that SWIFT doesn’t necessarily need to transform into a CBDC network itself, but CBDC networks must also interact with non-CBDC networks to operate cohesively.
Alrousan revealed that SWIFT has conducted trials with 39 central banks, including institutions from Asia, Europe, and the Middle East, to ensure compatibility between CBDC and non-CBDC networks.
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Africa is on the Verge of a Major Expansion in Digital Payments Infrastructure
When discussing Africa, remittances and micro-lending are often highlighted, yet a great deal more is occurring under the radar. Emerging technologies such as AI and crypto have placed Africa in the limelight.
Kwame asserts that opportunities outweigh challenges. He refers to a system created in Ghana in partnership with HPS, enabling users to make instant payments for goods and services from various funding sources (mobile wallets, cards, bank accounts) by scanning a QR code on their smartphones.
Kwame also advises fintechs to approach Africa not as a monolith but to tailor experiences for different nations within the continent, as requirements may differ.
He emphasizes that Africa has historically faced challenges with assisted finance and believes addressing this issue will reduce concerns regarding investments and other advancements. The continent must establish frameworks for assisted finance to enable growth for both businesses and individuals.
Kwame envisions that enterprises can develop solution stacks that will make assisted finance a reality and sees considerable growth potential in this sector for the continent.
Reducing the Cost of Cash Can Drastically Enhance GDP
Smaili further pointed out that the viability of any fintech in this domain depends on its relevance and interoperability, as these factors enlarge the market scope. Concerning markets like Ghana, he stated that analysts need to meticulously assess the verticals so that solution providers can effectively address specific requirements.
Smaili also mentioned that the global cost of cash stands at 0.3%, which is a considerable fraction of global GDP, and minimizing this through the adoption of digital payments could significantly influence the GDP of numerous nations.
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Key Takeaways
- The fragmentation of the global economy could lead to a 6.3% decline in global GDP.
- Digital payment solutions can reduce the cost of cash, estimated at 0.3% of worldwide GDP.
- Outdated systems, manual processes, and a lack of interoperability compel emerging markets to heavily depend on cash.
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