Citi Payments Perspectives

19 Treasury and Trade Solutions Citi Payments Perspectives Global Initiatives Payments Infrastructure Developments Regional Developments (North America) Instant Payments Citi Instant Payments Best Practices White Paper With the widespread drive to faster payments and continuous availability, instant payments (IP) schemes are uniquely positioned to play a key role in the evolving payments landscape to potentially enable cross-border transactions as well as help drive financial inclusion and economic progress. Our recently released Instant Payments White Paper 15 provides policy makers and central banks with a comprehensive view of best practices, standards, and capabilities considerations to enable alignment and drive adoption globally. Citi has found that while the mechanics of instant payments are generally standardized, for it to become the go-to payment method, all actors must agree on the focus areas most critical to strategy alignment and industry harmonization. Specifically, our experience has shown that there are four foundational elements of a “best in class” scheme: 24/7 scheme and processing availability Global harmonization of standards: including ISO 20022 and capabilities that allow for one-leg-out transactions Speed of processing Transaction limits In Other Words • Emergence of instant payments (IP) schemes is driving financial inclusion and economic progress. • Alignment of national IPs is crucial to help ensure widespread adoption for domestic and cross-border payments. • Criteria for best-in-class scheme: 24/7 availability, speed, global harmonization of standards and transaction limits. Continued � Global Initiatives Financial Stability Board (FSB) Enhancing Cross-Border Payments Roadmap Emerging Payments and Digital Assets Payments Infrastructure Developments ISO 20022 SWIFT Transformation Instant Payments Financial Market Infrastructure (FMI) Interlinkage Initiatives Regional Developments (North America) Immediate Cross-Border Payments (IXB) TCH Request for Pay (RFP) Bill Pay Latest on Fed/CHIPS ISO Timelines Lynx — Canadian High-Value Payment System Glossary