Securing the future of fast payments: The open-source debate

Fast payments—also known as instant, real-time, immediate, or rapid payments—bring speed, efficiency and access to financial services worldwide by allowing for immediate funds availability on a 24/7/365 basis. Implemented in over 100 countries, Fast Payment Systems (FPS) are rapidly becoming a cornerstone of modern digital economies.

In a series of two blogs, we explore topics that are becoming instrumental in securing the future of fast payments: (i) open-source technology; and (ii) cybersecurity.

Open-source software refers to technology that is released under a license allowing users to freely access, modify, use, and distribute both the software and its source code for any purpose. In the traditional open-source model, the source code is publicly available, accompanied by documentation and guidelines to support developers in its implementation and customization.

But can it be trusted for core payment system infrastructure? This is a question which FPS operators are grappling with as they assess the long-term implications of using open-source solutions versus proprietary software. Though fully open-source FPS implementations remain rare, interest is growing as institutions seek cost-effective alternatives.

Key Considerations Before Going Open-Source

The recently published World Bank’s technical note on open-source technologies under Project FASTT (Frictionless Affordable Safe Timely Transactions) outlines key considerations for adoption.

Understanding the True Cost of Open-Source.While open-source software removes licensing fees, these savings are just one piece of the overall cost of implementing and operating an FPS. Hidden expenses—including customization, regulatory compliance, ongoing maintenance, security updates, and system migrations—can significantly impact the total cost of ownership (TCO). A comprehensive cost analysis is crucial before adoption to ensure long-term sustainability.

Aligning Open-Source with FPS Requirements. For open-source solutions to be viable in FPS, they must meet functional, business, and security needs, ensuring compliance with ISO 20022 and other industry standards. Without this alignment, interoperability and market uptake could become significant hurdles. Operators must confirm that these solutions align with current requirements and their implementation roadmap.

Security by Design. Cyber risks are a major concern in payments infrastructure. Open-source FPS solutions must integrate secure design principles from the start, including rigorous vulnerability assessments. Security risks don’t end after launch—regular audits and updates are essential.

Customization, Complexity, and Long-Term Stability. Open-source FPS solutions offer freedom from vendor lock-in, but they come with significant technical demands. Customization requires strong internal expertise or external support to ensure proper implementation and security. Additionally, unlike proprietary systems with dedicated vendor support, open-source solutions rely on internal teams or active developer communities for updates, maintenance, and troubleshooting—making long-term stability and ongoing security management critical considerations.

Institutional Readiness for Open-Source FPS. Not all operators are equipped to handle open-source solutions effectively. Operators must assess their internal capabilities, availability of external technical support, and willingness to contribute to the open-source ecosystem to ensure sustained security and performance.

Moving Forward: A Sustainable and Scalable Future for Fast Payment Systems

As the global adoption of fast payments continues, policymakers and industry leaders must make strategic choices that balance security, cost, and innovation.

While open-source software offers significant potential for FPS, it requires thorough evaluation and careful vetting to ensure suitability and long-term sustainability. Conducting rigorous due diligence is essential to assess their security, scalability, and compliance with regulatory and operational requirements. Additionally, successful implementation depends on sufficient institutional capacity at both the payment system operator and participant levels to manage, maintain, and secure these technologies effectively.

Ultimately, collaboration is key. FPS operators, regulators, and financial institutions must work together to build resilient, secure, and future-proof payment systems that drive financial inclusion and innovation while maintaining sustainability and trust.

Source: blogs.worldbank