Interoperable Payments

Definition ∞ Interoperable Payments describe payment systems that allow transactions to occur seamlessly between different networks, platforms, or financial institutions. In the digital asset realm, this means enabling transfers of value between distinct blockchains or between blockchain and traditional financial systems. Such capabilities remove friction and reduce costs associated with converting assets or using multiple payment gateways. Achieving widespread interoperability is crucial for global financial inclusion and efficiency.
Context ∞ Interoperable Payments are a key area of innovation for central bank digital currencies (CBDCs) and cross-border remittance solutions. Debates often concern the technical standards and regulatory frameworks needed to support diverse payment infrastructures. A critical future development involves the widespread adoption of common protocols that connect various digital payment rails. Observing pilot programs and regulatory sandboxes for cross-platform payments provides important context.