Real Time Payment Systems

VOCALINK VOCALINK Aglobal move lowards roal lime payment syslems Brazil | Chile | India | Japan | Mexico | Nigeria | Poland | South Africa | Sweden | Switzerland | Taiwan | Turkey | UK What are real-time payments? Real-time = an interbank account-to-account payment that is posted and confirmed to the originating bank within one minute. Authentication Settlement Posting Good funds transfer Promise to pay Clearing How fast is fast enough? In a survey conducted across the payments industry, 89 people were asked how fast messaging and settlement should be. Source: Glenbrook, Immediate Funds Transfer Survey 2013 16% 36% 49% Immediate messaging and next day settlement Immediate messaging Immediate messaging and batched settlement and settlement a few times per day How important is faster payment processing and settlement? Extremely important It's the key issue for keeping our payment system relevant and competitive Somewhat important Faster payment processing is among the top demands Not so important There are many important needs and faster processing is not among the most critical payment We already have immediate funds transfers Source: Glenbrook, Immediate Funds Transfer Survey 2013 0% 5% 10% 15% 20% 25% 30% 35% 40% Factors triggering the reform of payment systems worldwide Need to improve overall efficiency of the payment system 4) Demand from the market for better payment systems and settlement services 2 Demands from end-users for better Response to technological innovations payment and settlement services 3 6. Demands from government institutions for better payment services The need to reduce systemic risk Central banks, governments and payments associations are currently concerned with the development of financial inclusion initiatives, modernisation of payment systems, decreasing the use of cash for payments and promoting competition within financial services. Source: Payment Systems Worldwide, Outcomes of the Global Payment Systems Survey 2010, World Bank The commercial case for real-time How important is faster payments for growth of the following payment domains? 100% 80% 60% 40% 20% 0% Bill payment Business to Remote purchases (eCommerce) Point of sale Person to person - domestic Person to person - cross-border business Very important I Somewhat important I Not important I Not sure Source: Glenbrook, Immediate Funds Transfer Survey 2013 The realisation of real-time payments Barclays "Pingit" (2012) Business to Zapp (SME) service (2015) UK mobile payments person to person UK Faster Payments Zapp e/m commerce (2014) Faster Payments rto business Direct Corporate access - Barclays "Buy It" (2013) High growth (2009) VocaLink: a practitioner based approach to real-time Customer propositions that drive commercial value Project initiation Needs analysis Design service Designing and architecture Deploy service Migration and on-boarding Future growth Strategic development Build service Operation Maintainance Building the platform and support Propositions Person2Person Bill Pay Small, Medium Online APIS Bricks Businesses & Mortar Payment methods In browser payment QR Scanning Mobile Number to RTP In browser payment QR Scanning Mobile Number to RTP Pay a Mobile No QR Code Mobile app NFC Tapping integration Pay an Account No SMS QR Scanning Mobile app only Mobile browser app launch QR Scanning OCR bill payment Vocalink: class leading expertise in deploying and running real-time infrastructure Real-time processing Experience of real-time applications Programme delivery of real-time deployment experience (ACH) Scheme management Software product experience Build and run support experience UK Faster Payments Service On 8 May 2013, Vocalink celebrated the five year anniversary of the Faster Payments Service in the UK, which has securely processed over 3 billion transactions since it was launched in 2008. The Faster Payments Service is the largest real-time payment system in the world that operates 24 hours a day, 7 days a week. VocaLink processes faster payments on behalf of the Faster Payments Scheme Limited. VOCALINK sto business onsumer Mess to consume