What does interoperability in the context of Faster Payments signify?

Interoperability in the context of Faster Payments signifies that payment systems can communicate and exchange payment messages seamlessly across different platforms and networks. This ability to operate across various systems is crucial for ensuring that payments can be made efficiently between users of different banks and payment service providers.

Through interoperability, the transaction process becomes more streamlined, reducing barriers for consumers and businesses. It allows different payment methods and systems to work together, which is essential for creating a cohesive payment ecosystem. As a result, users benefit from a broader range of payment options and improved access to financial services.

The notion that payment messages are only exchanged within the same system would limit the capability of the payment networks and hinder the progression towards a more integrated payment landscape. Thus, interoperability enhances efficiency and flexibility within the broader financial ecosystem.