Deep-dive Insights Deep-dive Insights

ePlumbing for Issuance & Settlement: Its Not Just for Payments My Research Items

Issuance and settlement are two sides of the same coin. The system in place for issuance is closely linked to the system in place for settlement. The factors that will drive participation in the value­chain of issuance will also drive the participation in the value­chain of settlement. The factors that will drive the business model of issuance will also drive the business model of settlement. The factors that will drive the scalability of the issuance system will also drive the scalability of the settlement system.

When it comes to issuance and settlement, most efforts till date have been related to payments. Largely absent are meaningful and scalable systems of issuance and settlement for other kinds of non­payment transactions – underscore meaningful and scalable.

From basic barter to mTransactions, with the evolving role of credentials, tokens, and identity, what will matter more then ever before is the ePlumbing of issuance and settlement. The ePlumbing will most definitely have a utility layer upon which we will then build the usability, what we do not know is if we build this on top of the legacy infrastructure or from scratch? Or whether we build this it on top of an existing sector, lets say payments where we probably have most of the sensitivity and building blocks in place? Or do we build this incrementally over time?

The strategic insight on ePlumbing for Issuance and Settlement gives an overview of evolution of payments from barter to mobile transactions and talks about the importance of ePlumbing for issuance and settlement systems in payment processing.


This strategic insight is authored by Mehul Desai. His latest book, August of Money – The Quest for Cashless Society, is being published by LTP and is the source for this insight.


Note: Strategic Insights are long form articles written by MEDICI analysts about a specific FinTech topic, trend, region, and news category or industry segment. Insights are collected via direct interaction and dialogue with industry players and thought leaders. Strategic insights can be integrated with the related Segment Snapshot, Research Report or Infographic for a more detailed analysis.