No. 47 - Technology providers in the payment sector: market and regulatory developments

Technology providers have taken on the crucial role in supporting the financial sector, enabling firms - even small ones - to become more efficient and keep pace with innovation. Yet, the interdependencies between such providers and financial entities may pose new systemic risks, deserving the attention of financial regulators and overseers. This paper presents the authorities' point of view, focusing on the payments sector; it demonstrates how numerous initiatives at international and national level have made a consistent and dynamic effort to create a regulatory and policy framework aimed at balancing security with innovation.