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Treasury and Trade Solutions
|
The Request to Pay Revolution
2
When implementing an RTP scheme, countries can choose
between two models:
1.
Centralized Clearing system
— a standardized national
infrastructure that provides connectivity to the banks,
e.g. UPI in India.
2.
Open Banking
— each participating bank is accessible
through Application Programming Interfaces (APIs),
e.g. PSD2 in Europe.
These models have their pros and cons — the central
clearing system is harmonized but may be inflexible
for future developments. The Open Banking model is
potentially more extensible to add new services, but runs
the risk of fragmentation unless standards are imposed.
Each RTP system should choose the degree to which
it is centralized and standardized for efficiency and
harmonization without harming the potential for innovation
and being open for new players to participate. The options
are not mutually exclusive — it is likely that centralized
systems and Open Banking will operate side by side in
several markets.
As the infrastructure provider
for several RTGS systems and
the New Payments Platform
(NPP) in Australia, SWIFT
has firsthand experience
in developing new real
time payment systems.
ISO 20022 and APIs are
core technologies, creating
the foundation for value
added services like RTP.”
Stephen Lindsay,
Head of Standards, SWIFT
How RTP Works
Checkout
Consumer chooses to
pay by bank
Authentication
Consumer authenticates
with their bank
RTP initiation
Secure payment request
sent to consumer’s bank
Confirmation
Merchant assured of
successful transaction
Consumer consents to
the requested payment
Approval
Payment
Credit transfer from consumer’s
bank to merchant’s bank