Copyright 2011, Fundtech Ltd. All Rights Reserved. Low Value Payments & Payments Hub Session: With the growing volume of low value payments in Asia, the search for interoperability continues Gil Gadot– EVP & CTO, Managing Director APAC 8 th April, 2011
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Relatively low denomination payment Delivered and processed in a batch Non-urgent Cleared and settled over 24-72 hours Domestic & Single Currency Revocable Low care – i.e. no repair Rejects are asynchronous Examples: ACH, BUCS, SEPA, GIRO B2B B2C
Not necessarily low denomination payment Delivered and processed as batch or single payment Non-urgent Cleared in 15 seconds and settled over 24-72 hours Domestic & cross border Web & mobile friendly Revocable Low care – i.e. no repair Rejects are asynchronous UK FPS, CNAPS 2, MAMBO… B2B B2C P2P
Low Value - New Networks
NATIONAL MARKETS
LOCAL CLEARING SYSTEMS
IRIS
ELLIPS
TOP
TBF
SPGT
RTGSplus
BI-REL
SLBE
CHAPS Euro
ARTIS
HERMES
FRANCE
GERMANY
BELGIUM
SPAIN
PORTUGAL
ITALY
-GREECE
AUSTRIA
IRELAND
LUXEMBOURG
NETHERLANDS
FINLAND
ACH
RTGS
RTGS
ACH
ACH
RTGS
RTGS
ACH
ACH
RTGS
RTGS
ACH
ACH
RTGS
RTGS
ACH
ACH
RTGS
RTGS
ACH
ACH
RTGS
RTGS
ACH
TAR
GE
T ‘
INT
ER
LIN
KIN
G N
ET
WO
RK
’
LINKEDRTGS
EU
B
AN
KS
SINGLE REGIONAL NETWORK
RTGS(TARGET 2)
EU
B
AN
KS
ACH NETWORK(SEPA)
NET SETTLEMENT(EBA EURO1)
NET SETTLEMENT (EBA Euro1)
Disparate National Infrastructures Single Pan-European Infrastructure
PE-ACH CSM
PE-ACH CSM
NON-PE-ACH CSM
NON-PE-ACH CSM
INTER-OPERABLE NETWORK
by 201x
Europe - TARGET EBA SEPA Simplification of Market Infrastructures
Direct Agency - SenderDirect Agency - Sender Direct Agency - ReceiverDirect Agency - Receiver
Originating Credit Institution
Originating Credit Institution
Beneficiary Credit Institution
Beneficiary Credit Institution
Third Party Beneficiary –Direct Receiver
Third Party Beneficiary –Direct Receiver
Members are the 13 UK banks, which agreed to meet scheme’s membership ruleDirect Agencies are sponsored by Members, who take full responsibility for them in FPS Corporates are customers of Members or AgenciesOCI’s and BCI’s (aka Indirect Agencies) are sponsored by a Member and communicate with FPS via a MemberSIP Clears in 15 seconds
1. Bill Presentment and Payment – allows electronic delivery of bills to a customer’s internet bank, with seamless integration with BPAY payment functionality
2. Payment Request and Payment – similar to above, in summary transaction form. More suitable for repeat or ad-hoc payment arrangements or schedules thereof
3. Person-to-person Payment Request and Payment – enables address holders to request and receive payment in real-time without disclosing BSB and account number
4. Payment With Advice to Address – delivery of remittance information with payment to address
5. Real Time Notification with Payment
6. Non-Value Items Delivery – delivery of documentation or commercial communications
7. Online Payment – initiating and authorising an online payment
A Payment Hub Is An Intelligent And Central Engine: • Capture and mapping of payment information• Enabling workflow, business, and regulatory rules• Clearing and settlement routing optimization• Risk/liquidity mitigation procedures
It Employs Service Orchestration:• Reacting to events • Orchestrating payment services and other
banking systems
The Payment Hub Is Not: • Just a messaging component• Just a simple payment router• A discrete technology