What happens when you have a bank account?
In a world where almost everything is a digital thing, it can be easy to forget what actually happens in the physical world.
We forget about how much money we actually spend on things.
What we really spend on is how we can earn money in digital ways.
That’s the world we live in now.
The world of digital payments, for example, has become a lot less scary and familiar.
You just have a card in your pocket, it says, and you’re ready to go.
But in the real world, it is often much more complicated.
A recent paper by David C. Clements and Peter R. Brown outlines how this process can sometimes be a lot more complicated than you think.
It is an evolution of the digital payment landscape, but the paper also shows how the digital world has not always been the safest place for everyone.
A big part of the paper is a critique of the new standardisation model we’re in.
The digital payment ecosystem is increasingly structured in such a way that it’s hard to tell who owns what and when a payment is made.
This model is a way to provide a more consistent and transparent experience for users.
The paper points out that the standardisation process also creates new vulnerabilities for the industry.
For example, a bank could be making payments for a business, for which they don’t actually own the right to do so.
The new standard means that banks can’t use the digital standard to charge customers a fee that the customer can’t understand, or a fee to cover the risk of counterfeiters.
The standardisation approach also makes it difficult to understand what exactly is going on with payment systems and payments systems in general.
The process of standardisation is complex, and often requires an extensive amount of research and development, Clements says.
But even in a world of standards and interoperability, the way payments are handled can be complicated and can leave a lot of uncertainty.
For instance, the process of setting up a payment for a bank and accepting it has been around for years, Cools says.
“You might not be aware of it.”
Clements and Brown say that many people are just not aware of the risks involved.
For one thing, there’s no set-up guide for banks and credit card companies that explain how to set up a payments system for each customer.
There’s also no clear way to understand whether payment systems are safe.
The payment system standardization process itself, they argue, is largely driven by banks.
“In a lot to the extent that banks have been in charge of setting these standards, it’s not really about the consumer,” Clements explains.
“It’s about the banks, and they are the ones that set these standards.
They’re not the ones to ask questions.”
What about the end user?
A common response is that banks are just using a standard that is set in stone.
That’s not the case.
In fact, Cicles and Brown argue that in many cases, standardization has made it much harder for users to find out how to do things differently, or to get paid.
This is particularly true of online payment systems.
A payment system that is not fully standardised, or is too confusing for users, is more likely to fail than one that is.
“Banks aren’t setting standards, they’re just writing standards,” Cools explains.
It is not surprising, then, that the payments industry is in a big state of flux.
As Clements points out, banks and card companies are not the only ones that can have a huge impact on the digital payments landscape.
“There are other players, and we’ve seen how they’ve come together to take advantage of the fact that we have a standard and how they can take advantage,” Coles says.
The result is a landscape where it is hard to know what to trust or what is safe, or what to expect in the future.
The best place to start learning more about the world of payments is the industry itself.
We interviewed a range of payment experts, and found that many of the questions and concerns we raised are being raised by the same people.
If you want to get in touch with us, you can find us on Twitter at @australianmoney, on Facebook, on LinkedIn or via email at [email protected]
More from the ABC: New banking rules could hit banks’ balance sheets The banks: Can banks pay more for their services?
What happens when the digital revolution ends?
The real question for the future of the Australian banking industry is this: Can banks actually make money?
How to invest in Australia’s future?
Read more about digital payments and digital payments news