What are the five payment system components, and what do they mean?
The five payment system components are regulators, operators, infrastructure, instruments, and users. The explanation is as follows.
- Regulators have the authority to regulate the rules of the game, provisions, and policies that bind all components of the payment system.
- The operator is an institution that ensures the final settlement of all transactions that occur with its users.
- Infrastructure is a physical facility that supports payment system operations.
- Users are consumers who use the payment system.
- The instrument is a means of payment, both cash and non-cash, which is agreed upon by the users in making transactions.
