International Payments Alliance Meeting Part 1 with Guest Kevin "Payments Professor" Olsen

Wrestling Payments Podcast: Season 2 - Episode 11

Episode Summary

In this episode of "Wrestling Payments," host Joe Casali sits down with Kevin Olsen, also known as the "Payments Professor." The discussion kicks off with Kevin's signature introduction and his enthusiasm for making payments engaging. They delve into their experiences at the NACHA Payments Alliance international meeting in Berlin, where both were deeply impressed by the city's historical significance and the intense professionalism of its business community. Kevin shares his personal experiences of exploring Berlin with his son, highlighting the city's rich history and its mix of architectural styles.

The conversation shifts to the core of the episode: the insights and learnings from the NACHA Payments Alliance meeting. Joe and Kevin reflect on the valuable networking opportunities the event provided, allowing them to connect with key decision-makers in the global payments industry. They discuss the significance of the meetings, particularly the discussions on fraud prevention, and the innovative approaches being taken to tackle fraud globally. Kevin emphasizes the importance of the Payments Innovation Alliance meetings and how they bring together leaders from various countries to share their approaches and solutions to common problems in the payments landscape.

Finally, Joe and Kevin explore specific topics discussed during the meeting, such as the implementation of the Legal Entity Identifier (LEI) and the concept of verification of payee. They express their admiration for the collaborative efforts seen in Europe to enhance payment security and efficiency, and ponder the potential challenges and benefits of adopting similar measures in the United States. The episode wraps up with reflections on the importance of such international collaborations and the shared goals of improving the payments industry worldwide.

Download Episode Transcript

Guest-at-a-Glance

💡 Guest: Kevin “Payments Professor” Olsen

💡Company: Pidgin

💡Where to find Kevin: LinkedIn

Key Insights

The Importance of Global Collaboration in Payments

Global collaboration in payments is crucial for addressing common challenges and fostering innovation. The NACHA Payments Alliance meeting highlighted how professionals from different countries come together to share solutions and strategies, creating a rich environment for learning and networking. This collaboration is essential as it allows participants to understand different regulatory environments and customer expectations. The presence of major decision-makers from various global payment systems provides invaluable insights and fosters partnerships that can drive the industry forward. The collective effort to address issues like fraud, regulatory compliance, and technological advancements underscores the necessity of global cooperation in developing a resilient and efficient payments ecosystem.

Fraud Prevention Requires Multi-layered Strategies

Fraud prevention in the payments industry necessitates a multi-layered approach involving various stakeholders. Discussions at the NACHA Payments Alliance meeting emphasized the complexity of fraud and the need for comprehensive strategies to mitigate it. This includes collaboration between financial institutions, central banks, technology providers, and even telecommunications companies. By sharing information and working together, these entities can detect and prevent fraud more effectively. Innovative solutions, such as the implementation of the Legal Entity Identifier (LEI) and the concept of verification of payee, are examples of how the industry is evolving to combat fraud. These measures aim to enhance transparency and security, ensuring that transactions are legitimate and reducing the risk of fraud.

Historical and Cultural Context Enhances Industry Meetings

Understanding the historical and cultural context of meeting locations can enrich the experience and outcomes of industry gatherings. The NACHA Payments Alliance meeting in Berlin provided participants with a unique opportunity to explore the city's rich history and diverse architectural styles. This backdrop added a deeper dimension to the professional discussions, fostering a sense of connection and engagement among attendees. Exploring significant historical sites and understanding the local culture helped participants appreciate the broader context in which the global payments industry operates. This cultural immersion can inspire new perspectives and ideas, contributing to more meaningful and productive industry collaborations.

Episode Highlights

Berlin's Rich History and Cultural Significance

Timestamp: [00:01:54]

Joe Casali and Kevin Olsen shared their experiences of visiting Berlin, highlighting the city's deep historical roots and diverse architectural styles. They explored significant landmarks like the Brandenburg Gate and remnants of the Berlin Wall, which offered a poignant reminder of the city's tumultuous past. This immersion in Berlin's history enriched their understanding of the city's development and its impact on the global stage. Joe found the mix of pre- and post-war architecture fascinating, noting how it illustrated the city's resilience and evolution. Their experiences underscored the value of understanding the historical context when attending international meetings, enhancing both professional and personal insights.

"Seeing the wall, seeing the places where the wall had been, some of that representation, I know, at least for my decade, my generation growing up that it was just like, wow. And to see places like, where Hitler died in it to be such a non-eventful place too, was phenomenal."

Contrasting Regulatory Approaches in the U.S. and Europe

Timestamp: [00:08:11]

The episode dives into the differing approaches to regulation in the U.S. and Europe. In Europe, regulators identify potential issues and leave the solutions to the industry, fostering innovation and adaptability. In contrast, U.S. regulators tend to react more directly to emerging problems, implementing immediate measures. This distinction highlights the varying philosophies towards managing and regulating the payments industry, reflecting broader cultural and operational differences between the regions. The discussion also touched on how these approaches impact the development and implementation of digital currencies like the digital Euro, which is more readily accepted in Europe compared to digital dollar initiatives in the U.S.

"The way the regulators get involved, they basically, the regulators there are more like, 'Here's what we think is a problem. You go figure it out.' Our regulators in the U.S. go, 'Wait, what's happening? Let's do something about it.' And it's a totally different approach to the problem."

National Scam Prevention Centers Enhance Fraud Detection

Timestamp: [00:16:29]

National Scam Prevention Centers in countries like Malaysia and Singapore significantly enhance fraud detection and prevention through multi-layered communication strategies. These centers integrate efforts from government, central banks, financial institutions, service providers, and telecommunications companies to create a robust defense against scams. This coordinated approach allows for rapid response and higher detection rates, often identifying fraudulent activities before they fully unfold. The discussion emphasized the potential benefits of adopting similar models in the U.S., despite the challenges posed by differing views on privacy and data sharing between Europe and the U.S.

"They show the detection rates of, kind of like I was saying earlier, seeing it before it happens because the communication level is there. They are able to react so much faster to where they are able to get some funds back."

Navigating the Complexities of International Payments

Timestamp: [00:12:54]

The conversation highlighted the complexities of managing international payments, especially when comparing systems like SEPA in Europe to the fragmented approach in the U.S. The discussion underscored the challenges posed by having multiple currencies and regulatory environments within Europe, akin to if each U.S. state had its own currency and payment regulations. This complexity necessitates robust communication and coordination mechanisms to ensure smooth transactions. The insights gained from understanding these complexities can help in developing more integrated and efficient payment systems both in the U.S. and internationally.

"Imagine the U.S. and if payments were flowing and we're comparing it to the EU, if payments were flowing, New York had its own currency. And Massachusetts had its own currency, but they also shared a currency. Imagine the complexities around that." (Approx. 00:13:00 - 00:14:00)​

To hear this episode and many more like it, subscribe to Wrestling Payments on Apple Podcasts, Google Podcasts, Spotify, or anywhere else you listen to podcasts, or listen above.