This report analyses the effectiveness of proxy services, which allow instant payments through an agreed identifier, such as a mobile number or national identity number.
By looking at different proxy ID systems across the globe, the authors present their key findings for South Africa - which is working to create a digitally-connected economy that will provide financial inclusion.
The central criteria that proxy services need to meet include accessibility and inclusion, privacy, user-friendliness, security, and verifiability.
Other considerations which need to be taken into account include the cost for infrastructure and installation, how to achieve buy-in from merchants and customers, as well as ensuring optimal outcomes within local contexts.
In the case of South Africa, the authors summarize that:
The report concludes that, as no single proxy fits all feasibility criteria, it may be necessary to implement a combination of ID proxies at the same time - in order to implement a seamless real-time payment system.