Midterm Report: Making IPS More Inclusive and Accessible to FinTechs and Non-Banks Assessment

Project Description
The Alliance of Digital Finance and FinTech Associations (AllianceDFA), in partnership with Contigo Global LLC, was awarded a grant from the Interledger Foundation (ILF) to lead a new global initiative aimed at making Instant Payment Systems (IPS) more inclusive and accessible to FinTechs, and Non-banks. The project‘s focus is to identify and document the challenges and successes that FinTechs and other Non-banks are experiencing in their markets, and will explore ways to strengthen the voice of inclusive finance actors in IPS governance, while identifying solutions to overcome the barriers that limit their integration and impact.

Project Update
The project aims to engage focus groups in 18 countries. To date, we have spoken with groups in six countries — Chile, Nepal, Nigeria, India, Ghana, and Kenya — with seven additional focus groups scheduled and five pending. To ensure holistic inclusion, we are intentionally targeting a mix of countries with established Instant Payment Systems (IPS) as well as those with emerging payment systems or markets still deciding which IPS to build or integrate. We are also prioritizing countries with unique market features to test whether the common barriers and enablers we have identified resonate across contexts, and to surface new insights from diverse environments. Across these discussions, stakeholders are sharing both challenges and successes related to the governance of existing payment infrastructure.

In addition, while we are on track in reaching our targeted number of countries in Asia and Africa, we are currently struggling getting traction in several Latin America and Caribbean markets. In LAC, we have confirmed interviews with Chile and the Caribbean, and possibly Peru and the Bahamas. However, despite several "pings" through Whatsapps and emails from AllianceDFA, we have not yet been able to get firm confirmations from Brazil, Colombia, Mexico or Uruguay, due to prior commitments and holidays.

We were mindful of not creating an experience where associations felt we were extracting contacts and insights without offering meaningful value in return. The associations involved in this work vary widely in their capacity, some operate with more than twenty staff and robust budgets, while others are volunteer‑run with annual resources of less than $1,000. Inviting their participation meant drawing on their time, networks, and knowledge, and it was important to us that the benefits flowed both ways.

A few of the most resource‑constrained associations asked whether a small financial contribution could be provided for their involvement. This did slow momentum in some markets as this was not possible within the current project budget. Fortunately, the inherent value of the research was recognised and we were able to identify alternative ways to ensure their contributions were acknowledged and value gained. We are also still exploring ideas with the Interledger Foundation team that create recognition of the value that associations shared.

We began by asking a simple question of our members: what would make participation in this research both feasible and genuinely valuable? The early conversations were candid. Members told us that response rates to research are often low and that anything demanding multiple meetings would struggle to land. They stressed that the process must not feel extractive; participation had to offer concrete benefits to their members and also for themselves as an association. This guidance shaped our design decisions.

Together with associations, we agreed on a single 90-minute session per market. We fused a short, anonymous survey with a facilitated discussion so that participants could identify priorities while also explaining the context behind them. Where a discussion ran long, or where someone could only join for 60 minutes, we followed up to complete the survey afterward, keeping our promise on time while protecting data quality.

To earn trust and ensure a positive response to the invitation and the focus group experience, we invested in how we invited people to participate. We sent personalised emails that framed the global significance of the work and explained why their market mattered. We shared the discussion topics in advance to reduce uncertainty and support an open, transparent dialogue. We also emphasised the Chatham House Rule and offered optional attribution as recognition of participants’ time and contribution. The invitation introduced all convening organisations (AllianceDFA, Contigo Global, the local association, and the Interledger Foundation) to demonstrate the credibility and legitimacy of the work. Co-branding with the local association signalled shared ownership and reinforced the standing of both the association and the research team.

Choosing to partner with AllianceDFA member associations added tangible value through their practical, context-specific guidance and deep local connections. Associations shared what typically works for their members, such as preferred meeting days, communication channels, and notice periods, and advised on the most appropriate way to manage invitations in their markets. Their networks were also instrumental in identifying the right participants to participate. We aligned our methodology with their recommendations, which has contributed directly to the success of the engagement so far.

We also deliberately gave associations choice in how they wished to be involved, recognising that they were leveraging their own reputations and relationships. In some markets, the association chose to take a leading role in sending invitations and convening, whilst others preferred this to be led by AllianceDFA with association endorsement. We adapted to each market’s preference while ensuring consistency in acknowledging and thanking associations as partners throughout the process.

At the start of each session, we ensured that everyone shared a common understanding of the focus of the research: formal Instant Payment Systems (IPS). To support this, we used a concise slide deck that defined what an IPS is and provided familiar examples (e.g. India’s UPI, Brazil’s PIX, Ghana’s GHIPPS, and Tanzania’s TIPPS) to anchor the discussion and its focus. Participants were invited to name their own IPS and comment on its level of maturity where one existed. These steps helped prevent misunderstandings and ensured that contributions were focused on the topic of IPS.

We introduced five broad categories of potential enablers and barriers using deliberately neutral language such as, “In some markets we have heard…” or “You may have…” to avoid implying that these factors necessarily applied to their context. The intention was to provide a starting point for the conversation without leading participants toward particular answers. We emphasised that they were not expected to comment on every category and should instead focus on what genuinely felt relevant or significant in their market. This approach allowed participants to surface their own priorities while ensuring the discussion remained unbiased and participant-led.

Our facilitation approach was designed to encourage contributions from every participant and to guide the group toward a collectively validated understanding of the market’s barriers and enablers. We kept video on and invited others to do so when bandwidth allowed, used the hand-raise feature to manage turn-taking and ensured no single participant dominated. The most productive moments were when people challenged and built on one another’s experiences; associations often validated whether a point matched what they heard across their membership, giving our findings breadth, depth and validity.

We have found that some associations we approach do not have the interest or capacity to host a session. In these cases, we are pivoting to using our own personal connections and networks, and those of the Interledger Foundation, to convene a group of relevant stakeholders directly and asking them to invite a small number of peers. This approach allows us to include these markets and capture their perspectives; however, we recognise that association-led sessions typically yield a more diverse and representative group, which in turn supports the surfacing of a wider range of voices and insights.

Project Impact & Target Audience(s)
We have included markets within our work that are interesting yet are not often researched or written about in research relating to IPS and/or fintech. Within these focus groups, we have also prioritised hearing from the smaller fintechs, non-banks and start-ups. The voices of these entities are often under-represented in both a local and global stage, yet are at times even more impacted by national payment infrastructure and policy decisions. They also are the actors in the digital finance ecosystem which are most likely currently serving or aspiring to serve marginalised consumers, such as women, rural dwellers and micro/small entrepreneurs. They often have a greater insight into the needs of these consumers and can also bring important perspectives on their needs and the impact of decisions on the ability to serve these consumers.

The value proposition for participants is: sharing their experiences in a global study, contributing to cross-market learning, and gaining insights from other jurisdictions once the results are shared. For associations, the work provided several benefits: new insights that could inform their strategic planning and strengthen their in-country advocacy with central banks or IPS operators; visibility through co-branding; and an activity they could report back to their members as part of their annual programming. Participants and associations expressed eagerness to read the report.

What is emerging as being important to associations and participants, is the request to share back what we are learning through the process. The final assessment, alongside a series of complimentary webinars and knowledge products, will equip participants and associations with insights on the common challenges and ideas for best practices. Associations can use the information to strengthen their own advocacy strategies and programming. Several associations have also expressed desire to participate in cross‑country learning, envisioning a space where associations can collectively explore best practices and collaborate on shared advocacy priorities. This interest underscores the potential for the project not only to gather knowledge but to catalyse networks of peer learning that support collective and local action.

Progress on Objectives
We have 3 Key Deliverables:
1 - Supporting membership deepening within AllianceDFA, particularly in Latin America and the Caribbean. Update & Progress: Deliverable met with the onboarding of FinteChile. In addition, Fintech Armenia and PSP Association Nepal have been onboarded, bringing total membership to 42. Chile and Nepal are participating in the IPS research. Discussions are ongoing in other LAC countries as well as with a new association currently in formation in the region.

2 - Produce a published Assessment on the Deeper Needs & Challenges of FinTechs in Integrating into their local IPS. Update & Progress: We are concentrating our energies on scheduling and implementing focus groups. We aim to be finished with focus groups by mid-February, and will move into writing the report ready for publishing in March.

3 - Internal Assessment: An Internal Set of Recommendations to Interledger Foundation on What Deeper Solutions Could Serve the Global FinTech Ecosystem to Increase Inclusive Governance. Update & Progress: Our internal assessment relies on feedback from focus groups, and we will work on clarifying and refining these recommendations once the focus groups have been concluded in mid-February. Based on the first 5 focus groups completed, the original set of potential deeper solutions has merit. However, we are seeking more data to understand how these solutions address the common challenges we are hearing. We are including a quantitative survey within our focus group discussions to help us analyze these potential solutions and their utility more closely.

Communications and Marketing
AllianceDFA has published the approved press release on their website and has included the language in their messages to member Associations. Other than the approved press release, we have not yet published any social media. We are concentrating on scheduling and having focus groups.

What’s Next
We remain optimistic that we will complete our interviews and deliverables by March 13.

Community Support
If any ILF community members have good connections with the FinTech associations in Mexico, Brazil, Colombia or Uruguay, please reach out to Sarah Corley: sarah@alliancedfa.org