Many central banks are struggling to keep up with the rapid evolution and fragmentation of the payments industry, as small, agile new entrants exploit gaps in the market and create payment systems that defy categorisation, according to a report by RBS and Capgemini.

The annual World Payments Report, published yesterday, warns that less regulated areas of the payments system are fostering innovation, but the sheer diversity of new services on offer makes it hard for central banks to effectively