Investment Rating - The report does not explicitly provide an investment rating for the industry. Core Insights - The integration of digital identity (ID) and fast payment systems (FPS) is essential for building modern, inclusive digital economies, addressing challenges related to fraud prevention, customer onboarding, and authentication [18][19][26] - The proposed model includes the Trusted Access and Credentialing Hub (TACH) and the Payment Identity Credential (PIC), which aim to enhance interoperability between digital ID and FPS [19][20][40] - Verifiable credentials (VCs) are central to this integration, providing a standardized, tamper-proof way to carry identity and entitlement information into payment processes [24][68] Summary by Sections Executive Summary - Digital public infrastructure consists of three pillars: digital ID, FPS, and trusted data exchange, which together enable secure participation and innovation [18] - The report emphasizes the need for an integrated system to reduce frictions for users and providers [19] Setting the Context - The World Bank has developed a toolkit to guide countries in implementing FPS, highlighting the importance of digital ID in these systems [33][34] FPS: Relevance and Challenges - FPS enable real-time payment transactions and are crucial for financial inclusion, but they face challenges such as access to transaction accounts and fraud risks [48][50] - Approximately 100 countries are developing or have developed FPS, which differ from card networks by allowing instant settlement and supporting multiple use cases [48][49] Verifiable Credentials as Catalysts for FPS and Digital ID Interoperability - VCs can streamline processes like KYC and onboarding by allowing users to present verified credentials without repeated checks [66][67] - The use of VCs can enhance security and user experience by embedding trusted identity into payment messages [68][69] Key Enablers of Verifiable Credentials - Digital wallets and trust frameworks are essential for the effective implementation of VCs, enabling users to hold and present their credentials securely [16][17] Creating a Foundational Model for Interoperability - The TACH and PIC model is designed to integrate with existing FPS without disrupting current infrastructures, allowing for incremental adoption [21][23] Use Cases for TACH and PIC - Various use cases are explored, including KYC credential issuance, confirmation of payee, and eligibility verification, demonstrating the practical benefits of the proposed model [24][42] Key User Experience Considerations - The report outlines user experience features enabled by the PIC, emphasizing the importance of seamless interactions across different platforms [31][32] Conclusion - The paper aims to provide a conceptual foundation for policymakers and stakeholders to advance interoperability and build resilient digital payment ecosystems [31][30]