Integrating Digital ID with Fast Payment Systems

This White Paper presents a conceptual model for integrating digital identity into fast payment systems (FPS) and introduces new methods for making and receiving payments through verifiable credentials. The objective is to explore how interoperability between digital ID and payments can address challenges related to fraud prevention, customer onboarding, authentication, and the seamless integration of identity into transaction flows. Central to this model are the Trusted Access and Credentialing Hub (TACH) and the Payment Identity Credential (PIC), which link verified identities to transaction accounts and enable various payment-related functions. The paper discusses the importance of verifiable credentials in reducing reliance on centralized databases, enhancing user experience, and improving resilience within payment systems. It also highlights the need for a standardized credential form to address gaps in current fast payment systems. Furthermore, the paper outlines governance, legal, and operational challenges that must be addressed to effectively implement this integrated approach and enhance trust in digital payment ecosystems.