8 / 16
Treasury and Trade Solutions
|
The Request to Pay Revolution
6
AROUND THE WORLD IN RTP
In the same way that we expect each country to have a
Real Time Gross Settlement (RTGS) system and Automated
Clearing House (ACH), so we will expect that each country
will have a real time low value clearing system and, in
due course, RTP with tokenization and a range of value
added services.
The canonical RTP example is the iDEAL scheme in the
Netherlands which captured around 70% of ecommerce
payments in the country. iDEAL was created by the Dutch
banking community and the SCA ‘friction’ involved in the
payment process has largely been accepted by merchants
and consumers. As an indication of how RTP can evolve,
iDEAL is now moving into the POS space.
Here are a few of the notable schemes that each give a
glimpse of how RTP may evolve. Each of these examples
is a vector that points towards what the world of real
time collections will look like. Glimpses of the future are
unevenly distributed, so we have to know where to look
and what to look for.
Asia Pacific
•
China
: Discussions about payment system innovation
must begin with China where the two dominant wallet
providers have demonstrated what the world might
look like when all countries have real time payments
and collections. The digital wallet providers are
currently connected directly to banks through non-
standard, bilateral APIs and host to host connections,
which should bring to mind the structure of PSD2.
However, China is implementing the Nets Union Clearing
Corporation (NUCC) system that will be the new method
for wallets to debit and credit consumer bank accounts.
NUCC is only available to Chinese regulated wallet
providers at this stage.
•
Hong Kong
: The Faster Payment System (FPS) is scheduled
for launch in September 2018. It is a multi-currency
platform that will support both HKD and RMB. Banks and
non-bank payment service providers can participate.
Payments can be made through mobile phone numbers
or email addresses as a proxy for bank details. FPS will
provide real time credit transfers and RTP. To facilitate RTP
at the POS, the Hong Kong Monetary Authority (HKMA) is
developing a common QR code standard.
NPCI’s goal is to transform India into a ‘less-cash’
society as an enabler of national economic progress.
We are happy to see the traction of BHIM-UPI as more
and more consumers are switching to mobile digital
payments. The growth of UPI is fuelled due to 60
participating banks, 300 large merchants and around
fifteen UPI enabled apps from third parties.
We shall continue to add more features and
services to the UPI platform and build even greater
acceptance with banks, merchants and consumers.
Every step in this journey is motivated by the benefits
we are delivering to ordinary Indians and the example
that we can provide to other countries.”
Dilip Asbe, CEO in Charge
National Payments Corporation of India (NPCI)