World Bank Experts Propose New Model for Digital Payments Interoperability

The future of digital payments is moving toward greater speed, security, and inclusivity. World Bank experts Guillermo Galicia Rabadan and Harish Natarajan have introduced a new foundational framework that could reshape how countries build interoperable digital payment systems. Their proposal centers on two innovative concepts – Payments Identity Credential (PIC) and Trusted Access and Credentialing Hub (TACH) – that aim to streamline identity verification, strengthen trust, and expand financial inclusion.

What the PIC and TACH Model Means

At the heart of the World Bank’s proposal is the Payments Identity Credential (PIC), a portable digital credential that consolidates identity data, consent preferences, and account details into a single, verifiable package. This credential can be used repeatedly across different platforms, reducing the need for fragmented onboarding processes and simplifying access to financial services.

Complementing PIC is the Trusted Access and Credentialing Hub (TACH), which provides the governance structure to connect payment systems with national digital ID frameworks. TACH ensures that credentials are issued, managed, and verified in real time, while enabling cross-border and cross-sector interoperability. Together, PIC and TACH provide the infrastructure needed to transform today’s fragmented digital ecosystems into cohesive and scalable platforms.

Why This Model Matters for Financial Inclusion

The proposed framework offers several advantages for financial inclusion. By reducing the burden of repeated Know Your Customer (KYC) checks, it makes onboarding faster and more efficient, especially in developing markets. Linking identity directly to payments also enhances security, reducing fraud and building user trust. Importantly, the model is designed to work on a wide range of devices, including basic mobile phones, making it accessible even in areas with limited connectivity. Governments can also use this system to deliver welfare benefits in the form of digital credentials, helping to reach populations that are often excluded from traditional banking.

Challenges to Adoption

Despite its promise, the model also faces challenges. Effective governance will be critical, as regulators must define rules for access, pricing, and interoperability to ensure fairness and consistency. Standardization will be equally important to align the roles of identity providers, payment service operators, and public agencies. Above all, user trust will depend on strong safeguards for privacy, consent, and cybersecurity. Without clear protections, widespread adoption could face resistance from both consumers and policymakers.

A Global Context

The proposal builds on the World Bank’s ongoing efforts to strengthen digital public infrastructure, including Fast Payment Systems, national digital ID programs, and trusted data exchanges. By aligning with international frameworks such as the European Union’s eIDAS and global anti-money laundering standards, the model provides a pathway for interoperability that extends beyond national borders. This global perspective is essential as economies become more interconnected and cross-border digital transactions continue to grow.

The World Bank’s PIC and TACH model represents an important step forward in the evolution of digital payments. By unifying identity, consent, and account data into portable credentials, and by providing a governance hub to manage access, the framework addresses long-standing challenges of fragmentation and trust. For governments, financial institutions, and technology providers, it offers a roadmap toward more secure, inclusive, and interoperable payment systems.

However, for this infrastructure to work efficiently, strong and reliable biometric authentication will be essential. While passwords and device-based credentials provide one layer of security, biometrics such as iris recognition offer a higher level of trust and fraud resistance. Iris authentication is uniquely stable over a person’s lifetime, extremely difficult to spoof, and effective even in large-scale deployments.

This makes iris technology an ideal complement to models like PIC and TACH, ensuring that digital identities remain both verifiable and secure across financial services, e-wallets, and even future crypto wallets.

At IriTech, we specialize in delivering world-class iris recognition solutions that empower digital identity systems worldwide. By integrating robust biometric authentication into digital payment ecosystems, we help governments and enterprises build platforms that are secure, interoperable, and future-ready.

Learn more about our solutions at www.iritech.com or contact us at info@iritech.com to explore how iris biometrics can support the next generation of digital payments.