Applying an Inclusive Lens
As instant payments systems (IPSs) gain traction globally, so do fraudulent payments processed through these systems.
Fraudulent payments are not unique to IPSs. All payments systems and payment methods are targets for fraudsters, particularly as they become more established. Fraud is harmful to the IPS ecosystem and particularly detrimental to low-income and women end users. Inclusive principles are needed to guide a holistic response to fraud.
The Level One Project
The Level One Project is an initiative of the Gates Foundation’s Financial Services for the Poor (FSP) program. The Level One Project advocates for inclusive, interconnected digital economies to bring poor people into the global financial system, and ultimately to help promote global growth and opportunity.
Working across the public, private, and nonprofit sectors in coordination with a wide variety of institutions, the Level One Project is a multi-year effort to address digital payments system infrastructure at a national and regional level and do so in a way that’s both sustainable and compelling for providers of financial services.
Level One Project Principles
A set of principles to guide countries, regions, or commercial organizations working to create instant payments systems that are inclusive and meet the needs of low-income consumers. Such systems are referred to as inclusive, instant payments systems (IIPSs). An IIPS includes a scheme (set of rules that govern participation) and platform (the technology used to operate the system).
Fraud Mitigation Principles
The fraud mitigation principles presented in this report are in line with and build on the Level One Project principles to guide entities to effective fraud mitigation.
With increasing and accelerating adoption of L1P aligned inclusive instant payment systems in low- and medium-income countries comes a renewed focus on consumer protection and preventing systemic fraud. We are updating the L1P guide to add a small number of sharp fraud management related principles, which will increase dramatically the safety of digital payment platforms for users and providers alike.
As always, these additions are the result of intense consultation across the industry. However please do not hesitate to reach out to me and my team with your insights and suggestions.
Next Topic in this Section: Level One Project Focus