FLAVORS OF FAST 2020 The global real-time payment trends transforming money movement
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FLAVORS OF FAST 2020 The global real-time payment trends transforming money movement
CONTENTS
Page 32 - Regional Trends to Watch: Infographics
Europe, the Middle East and Africa (EMEA)
Asia-Pacific
The Americas
Page 39 - Spotlight on India: A World Leader in Real-time Innovation
Insights from experts at State Bank of India, Paytm Payments Bank, (former)
National Payments Corporation of India, Boston Consulting Group (BCG),
Fintech Meetup, PayNearby and Fino Bank
Page 1 - Welcome to the 7th Edition of Flavors of Fast
Insights from Raja Gopalakrishnan, executive vice president, FIS’ global real-time
payments business unit Fueling Faster Payments Forward
Page 44 - Interview: Claus Richter on the P27 Nordic Payments Platform
Page 3 - What’s Next for Real-time Payments
(and What No Financial Provider Can Afford to Ignore) Page 47 - Is Request to Pay the Missing Piece of the Real-Time Payments Puzzle?
Insights from Aman Cheema, FIS’ senior vice president, strategic initiatives and William A regional view of where request-to-pay capabilities stand today,
Wied, chief technology officer for FIS’ global real-time payments business unit and where they’re headed
2020: A Year of Acceleration Page 51 - Interview: Adrian Lovney on Australia’s New Payment Platform’s
Page 8 - Real-time Movers and Shakers Across the Globe Mandated Payments Service
Fast Facts
Countries with Live Systems Page 54 - Interview: Transport for London’s Jit Ng on What Real-time Payments
Under Development Offer Merchants
On the Radar
Page 56 - Interview: The Clearing House’s James Colassano on Real-time
Page 29 - Real-time Payments and Corporate Treasury Payments in the United States
Insights from Andrew Bateman, executive vice president for FIS capital market
solutions buy-side
Page 60 - A Golden Window of Opportunity for Cross-border Real-time Payments
Insights from Daniel Mayhew, FIS’ senior vice president, cross-border payments
FLAVORS
OF FAST
2020
WELCOME TO THE
7 EDITION OF
TH
FLAVORS OF FAST
In this year’s report, you’ll find exclusive Clearly evidenced by a doubling of real-time
interviews with global leaders of real-time payments volume and value compared
payments systems who are playing a critical to last year, the potential to add a New
The year 2020 has made us all keenly This year marks FIS’™ seventh edition role in shaping the present and future Umbrella Entity (NUE) to further move
aware of the impact the global pandemic of our annual Flavors of Fast report, of faster payments. Claus Richter, chief the country’s digital payments forward
has had on nearly every aspect of life, which was originally inspired to capture operating officer of P27 in the Nordics, and other initiatives in the pipeline,
professionally and personally. Among the early influences we saw faster which is preparing to launch the world’s India looks set to remain the real-time
many other things, it has highlighted payment schemes making around the first real-time, multicurrency cross-border payments capital of the world. Flavors of
the critically important role that moving world. When we published our very system; Adrian Lovney, chief executive Fast 2020 includes an in-depth feature on
money instantly and digitally plays for first Flavors of Fast report in 2014, we officer of Australia’s New Payments Platform, the country, including exclusive insights
individuals, businesses and corporations. counted a total of 14 live schemes. This which will soon release its Mandated from these financial services insiders who
Faster payments aren’t only about money; year, 56 countries are now live with real- Payments Service (MPS); James Colassano, have been directly involved with real-time
they are also about instant connectivity. time payments. With the proliferation senior vice president, RTP product payments initiatives across India: Challa
They are not just about speed; they are in faster payments infrastructures, development and strategy at The Clearing Sreenivasulu Setty, managing director,
equally about precision, transparency real-time capabilities have become House, who spoke about RTP’s continued State Bank of India, Satish Kumar Gupta,
and certainty. Eventually we will move more sophisticated, supported by the expansion in the United States, and Jit Ng, MD & CEO at Paytm Payments Bank, A. P.
back to a time when the pandemic is in innovation overlay services and APIs fuel, payment industry interface manager at Hota, former, CGM, RBI and former MD &
our collective rear-view mirror, but the and that enable new business cases to Transport for London, who shared his CEO, National Payments Corporation of
value real-time payments offer and their continually emerge. It is a world that is in perspective on the unique role real-time India, Prateek Roongta, MD and partner at
adoption will prove to be lasting. constant motion, and consequently, the payments can play for merchants. Boston Consulting Group, Abhishant Pant,
scope and focus of Flavors of Fast 2020 founder of The Fintech Meetup, Anand
have evolved as well. Past editions of Flavors of Fast have Kumar Bajaj, MD and CEO at PayNearby,
consistently recognized India’s Immediate Rishi Gupta, MD & CEO at Fino Bank.
Payments System (IMPS) as a world leader
in real-time payments innovation.
Page 1
FLAVORS
OF FAST
2020
As we’ve long said in Flavors of Fast, the real As you explore this year’s report, you’ll I’d like to personally thank all of the Named Worldpay RealNet, it is the
story isn’t only about the speed of payments, also find bold predictions from FIS’ Aman experts—within FIS and outside of it— industry’s first business-to-business global
but also about what can be done on the real- Cheema and William Wied on what the who dedicated their knowledge, time, real-time payments platform with the
time rails to add tangible and meaningful future holds for real-time payments, and expertise and thought leadership to vision to make the real-time payment
value that is felt at every step in the value what every payment provider must know this year’s Flavors of Fast report. experience for businesses simple, easy
chain. This year’s report further explores that to ensure they’re poised to keep up with and cost effective while dramatically
message with a region-by-region look at the this ever-evolving and unyielding world It has never been more important to enhancing the user experience. We will
evolution of request-to-pay services– often of faster, smarter, better global money remove the barriers to trade by building continue to give periodic updates as we
called the missing puzzle piece that’s needed movement. FIS is strategically focused open, sustainable and instant payment progress this key strategic initiative.
to fuel significant increase in activity on the on building an innovative, global SaaS services across the globe working with
real-time rails. platform using a network-of-networks all participants whether they are banks, We invite you to be a part of the real-time
approach that will propel real-time merchants, corporates, technology payments conversation with us and hope
You’ll also find exclusive commentary payments further forward. partners or fintechs. you’ll enjoy the report.
from FIS’ Andrew Bateman and Daniel
Mayhew, who offer their expert views on We fully embrace our role as a fintech
the influence of real-time payments in leader dedicated to helping every client FIS has been directly involved in the LET’S ADVANCE THE
corporate treasury, and how cross-border advance their future today, and I sincerely deployment of faster payments schemes FUTURE TOGETHER.
payments will move into a real-time hope you find these insights valuable. around the globe for many years, and we
environment to remove longstanding are glad to share with you that we will
hurdles associated with cross-border launch our new real-time SaaS platform Sincerely,
transfers made via correspondent banks. within the next several months, defining Raja Gopalakrishnan
the next frontier in real-time payments. executive vice president,
FIS' global real-time payments business unit
Page 2
FLAVORS
OF FAST
2020
WHAT’S NEXT 1. The pandemic He cites the retail sector as an example
of just how influential the pandemic has
accelerated the shift been on payments: “About 15 percent of
retail business happens digitally today, and
to digital payments;
FOR REAL-TIME
that number was projected to increase to
about 50 percent in three years. Retailers
its impact will be now need to be ready to make that
permanent transition within the next 12 months and
PAYMENTS
should expect that it will be permanent.”
The global pandemic has temporarily
redefined accepted norms for how For some payment mechanisms, 2020
we collectively work, interact and may even be the year that marks their
connect, but its lasting role in money march to a permanent end. “Paper
movement cannot be understated. “The check use has been steadily decreasing
by four percent per year from 2015 to
And what no payment provider
permanent digitization of payments
was due to happen, but with COVID-19 2018, but the pandemic has highlighted
and individuals becoming hyper-aware how laborious and cumbersome checks
and physical payments, in general, can
can afford to ignore
of physical interactions, the inevitable
has been accelerated. The shift to digital be,” says Cheema. William Wied, chief
payments will be permanent,” says Aman technology officer for FIS’ global real-time
Cheema, FIS’ senior vice president, payments business unit, says that the
Insights by Aman Cheema, FIS’ senior vice global financial strain brought on by the
president, strategic initiatives and William strategic initiatives.
pandemic has also increased the perceived
Wied, chief technology officer for FIS’ and tangible value immediacy offers when
global real-time payments business unit. moving money.
Page 3
FLAVORS
OF FAST
2020
2. Real-time While the pace at which real-time
capabilities will evolve varies greatly by 3. Monetization FIS’ future-
payments systems market, Wied expects that continued
change will become rapid as governments
opportunities for thinking focus for
are evolving beyond and private industry work together to real-time payments fueling real-time
discover new ways to propose and test
speed different solutions that fuel greater real- are increasing payments
time payment efficiency and innovation.
Increasing real-time payment adoption rates For example, the Reserve Bank of India’s The question of how to monetize real-time
and continual development and evolution (RBI) New Umbrella Entity (NUE) effort, was payments has long been a topic of debate,
of real-time infrastructures around the announced in early 2020 to address which but Cheema says answers have emerged,
globe speak to the staying power of real- private companies are able to contribute particularly when it comes to wages in
time and indicate the true potential that is and compete in real-time payments. the gig economy and the increased use
just beginning to emerge. Cheema points Brazil’s PIX initiative, The Central Bank of of takeaway and delivery services amid
to Australia’s New Payments Platform, Brazil’s instant payment functionality that’s COVID-19: “Globally, 85 percent of gig
which has seen 277 percent year-over-year scheduled to launch in November 2020, will economy workers would work more often
growth just two years after launch, as one open the world of account-to-account and if they could get paid faster. In Singapore, Creating an ecosystem with
example. In 2019 alone, China processed an real-time payments to private industry and Grab was able to dominate the ride-
astonishing 16 billion+ real-time payment sharing market partly by paying drivers in a collaboration mindset that
competition and eliminate intermediaries,
transactions. In Europe, Cheema predicts thus reducing transaction costs. real time, while its competitors paid every enables adoption to increase
that open banking, SEPA and the European few days. They did this by leveraging the and become stronger
Payments Initiative (EPI) could all come To optimize impact of the newly created existing real-time payments infrastructure
together to increase the adoption and payment methods, financial service in Singapore.”
transformation of real-time payments, providers need to take a holistic approach
and notes that innovation in the United across markets and payment types as Given that a hallmark element of so
Kingdom has further accelerated with the much as possible. “Part of the challenge many global real-time infrastructures is
development of Pay.UK. He adds that central for payment providers is to provide a the ability to foster innovation, Cheema
bank digital currencies (CBDC), which can unified and consistent view to the varying says admirable use cases are emerging,
provide banks with more transparency, payment capabilities they provide across particularly when it enables immediate
security and monitoring capabilities, are the markets they serve. Although there payouts to those in direct need of funds.
another piece of the real-time evolution that “In the Netherlands, real-time monetization Bringing cross-border payments into
are separate efforts within each one of
has emerged in 2020. “Additionally, the peer- these markets (with likely very different can be seen with insurance disbursements, true real time with our enhanced
to-peer nature of blockchain technology implementations) there is a common particularly in healthcare,” says Cheema. network of networks and increased
reduces fees and transaction times attribute, which is ISO 20022,” says Wied. “Given that administrative complexity
significantly. As such, 70 percent of banks accounts for up to $389 billion in total adoption
“In short, ISO 20022 provides a consistent
are engaged in or about to start CBDC work. messaging format and protocol common U.S. healthcare spending per year, the
Of these, more than half are exploring both to all financial service providers.” use of real-time infrastructures could also
general-purpose and wholesale CBDCs. The eliminate such financial demands and
primary motivations are payments safety allow spending to be allocated elsewhere.”
and domestic efficiency,” says Cheema.
“As unemployment has grown and businesses have been challenged to change the way they operate, the need for faster
payments has become critical. As more companies (both big and small) move to distanced and contactless modes Central bank digital currencies
of business, the payment methods follow. Governments are taking a leading role in contactless payments, including and self-sovereign ID
providing financial relief disbursements, tax refunds and other remittances in a more real-time manner,” - says Wied.
Page 4
FLAVORS
OF FAST
2020
“There are also new use cases
supporting those adoptions,
including B2B treasury payments,
person-to-person real-time cross-
border payments, emergency
insurance remittances and many
more fueling real-time initiation,
clearing of funds and the overall
economy,” says Cheema.
4. Cybersecurity attacks and data-
privacy regulations highlight
weaknesses in aged payments systems
Wied says that traditional security practices Technologies such as EMV and
have focused on vulnerabilities such tokenization have made these assets far
as weak user credentials/passwords, less available, but adoption is still slow,”
application vulnerabilities, malware, social says Wied. “In addition to cybersecurity
engineering and insider threats but have standards, data protection and privacy
largely failed to stem the tide of breaches. regulations are quickly evolving. Global
Data Protection Regulations (GDPR) in the
In the first half of 2019, data breaches EU have led to a worldwide surge in new
(most of which were financially regulations. This represents a challenge
motivated) exposed 4.1 billion records. and opportunity to companies who are
Gartner predicts that by 2022, worldwide looking to provide payment services across
cybersecurity spending will reach nearly the globe. The ability for financial service
$134 billion. Despite these investments, providers to offer compliant solutions
Wied says providers with disparate or across the various markets they serve
outdated payment systems still may not provides tremendous value to their clients.
have adequate protection. The alternative is for payment service users
to piece together many different solutions
across the markets they serve.”
“The focus needs to be on greatly limiting
and eliminating the need for handling the
most prized assets, like card and account Wied also predicts that the steady investment
numbers. The more platforms and systems in public cloud development that has taken
these card and account numbers reside on, place over the last five years will accelerate,
the greater the overall risk of exposure. representing a significant shift in capital
investment within the payments industry.
Page 5
FLAVORS
OF FAST
2020
Big tech companies will
leave the financial products
to financial institutions
5. Big tech In 2019, Apple debuted a credit card created
in partnership with Goldman Sachs. Like 6. Banks and
companies will Google, the company has left much of the
financial legwork to its bank partner, while
acquirers' roles in
leave the financial designing the card and integrating it with its the ecosystem will
digital wallet app,” says Cheema.
products to financial shift
institutions Big tech players will focus “Banks and acquirers hold both risk and the
The past few years have seen big tech
on maintaining the customer product. They will most certainly remain
relevant as real-time payments become
becoming involved in a number of financial relationship, experience increasingly prevalent, but how they
products that span deposits, loans and and capturing more customer interact with the ecosystem will change,”
credit cards, and Cheema predicts that says Cheema. “Lessons learned from early
involvement will continue. “Google plans activity, searching and buying schemes and that are built into the newest
on launching a consumer bank account behavior, but will remain a platforms highlight that payments players
in collaboration with Citibank because
they are interested in sitting on top of their distributor, essentially leaving the need to combine a real-time and open-API
strategy and solution.” The flexibility to meet
financial infrastructure and expertise with business of financial products to all transaction and payment types, API calls
their Google Pay technology. the financial institutions. and the ability to work with companies like
Google and Apple is critical in driving the
value-added services that are required to
deliver a return on investment.
Page 6
FLAVORS
OF FAST
2020
7. Artificial 8. Payment What to look for in a Expect these four
intelligence will providers will microservice system radical changes in the
have two core seek microservice Wied says there is no single definition of next three years
purposes in systems to future- microservice, but it typically includes the
following attributes:
Aman Cheema, FIS’ SVP, strategic initiatives
payments proof
• A simple and discreet business purpose The influence of COVID-19
Wied says there are two main areas where “Change in product capability is organized around a specific business has accelerated the need for
artificial intelligence will impact the inevitable. The key to future-proofing capability more collaboration between
payment solutions provided: Predicting user payment platforms lies in how it is built, countries for services like cross-border
behavior and optimizing recommendations not its current capabilities,” says Wied. • Messaging enabled to communicate over and supply-chain finance. This will lead to
for payment services. “Data analytics are “Microservice design is one key to providing a network to fulfil a specific goal and
being used more and more to predict future platforms with the ability to grow and communicate with other services with a more harmonization of rules and regulation
customer behavior and identify emerging evolve.” A microservice design approach well-defined messaging protocol globally and will greatly reduce friction
trends. These analytics can help payment is in direct contrast to the highly brittle in global trade. Where digital commerce
providers plan and prioritize future product monolithic design of many payment • Autonomously developed using a variety
road maps,” says Wied. platforms today, which make small changes friction remains, governments will start
of programming languages, database, to align on global policy and standards to
very expensive and introduce risk in parts of hardware and software environments
the platform that were unchanged. make a more seamless global economy.
“As the number of payment
•Independently deployable and in
vehicles and schemes continue “Microservice design aims to conjunction with other services The world of payments and
to grow, they add to the enable software development banking will become more
already cluttered set of choices teams to introduce continuous • Released in an automated fashion that converged for retail, commercial
incremental change, while requires minimal hands-on human
a customer has to make. interaction
and wholesale.
Most personal and corporate minimizing impact to the
users lack the subject matter overall platform,” says Wied. There will be a stronger
expertise to decide which emphasis on the distribution
and manufacturing of financial
payment scheme is best to
products underneath innovative,
use. An intelligent payment customer-centric technology from big tech
platform can use a rule-based companies.
engine, data analytics and
other intelligence tools to help The data economy will mature
route transactions to either the further, removing the emphasis
lowest cost or fastest payment on financial products or services.
scheme available,” says Wied. Data is the core driver of value.
Page 7
FLAVORS
OF FAST
2020
REAL-TIME
MOVERS 56 countries now
live with real-time
AND SHAKERS
payments
Compared to 2019, six countries more
ACROSS
than doubled the volume of real-time
payments; four doubled the value
transacted.
THE GLOBE
“Inter-bank fully electronic payment
systems in which irrevocable funds
are transferred from one bank
account to another, and where
confirmation back to the originator
and receiver of the payment is
available in one minute or less.”
Page 8FLAVORS
OF FAST
2020
Malaysia,
USA UK Bahrain Singapore
TCH completes request for Request to Pay overlay Largest percentage and Thailand
payment pilot program on RTP, service piloted in volume growth of 657% Announced cross-border
with plans to expand in 2021 May 2020 multicurrency payment initiative
Brazil and Vietnam
and Hungary
Europe
SCT Inst
India
Mexico Most daily
Strong volume Launched 56% of European payment real-time transactions, with
growth of more than real-time payments service providers joined 41 million payments per day
140% in 2020
Republic of Sweden, Denmark The
Philippines
Australia
Korea and Finland New Mandated Payments
Most transactions P27 cross-border Largest percentage Service to launch
per capita with 75 transactions multicurrency service value growth 482% in 2021
per year, per citizen to launch in 2021
Page 9FLAVORS
BIR
Sweden LI
OF FAST
Straksclearingen
Denmark LI
SCT Inst
Straksbetalinger LI Europe
2020
Norway LI
SCT Inst
Greidsluveitan LI Croatia
Iceland LI
RTPE
UK Faster Payments LI Czech Republic IBPS
United Kingdom LI LI China
Express ELIXIR
LI Poland HOFINET
LI Republic of Korea
SIC Plăți Instant
Switzerland LI LI Romania LI Zengin
Canada UD Japan
Hungary LI
RTP
USA LI LI FPS
Hong Kong
SCT Inst
LI
SPEI
Mexico LI Bulgaria Vietnam LI LI CIFS
Taiwan
RPS
LI IMPS
Colombia OR Turkey
India LI LI PromptPay
Thailand
CEFTS
Peru UD Sri Lanka LI LI Instapay
Philippines
SITRAF RPP UD Indonesia
Brazil LI Malaysia LI
Transferencias FAST
en Línea (TEF) LI Singapore LI
NPP
Chile
Australia LI
GIP Fawri+
Ghana LI LI Bahrain New Zealand UD
LI Live
UD Under development NIBSS Unknown
OR On the radar Nigeria LI LI Saudi Arabia
Real Time PesaLink
Clearing (RTC) LI LI Kenya
South Africa
Page 10FLAVORS
OF FAST
2020
AUSTRALIA BAHRAIN
Name Overlay Services Name Overlay Services
NPP (New Payments Platform) Account alias service, payments, and Fawri+ Direct debits and e-wallet (with QR code)
corporate payments. Planned for 2021-22:
Year live Mandated Payments Service (direct debit Year live Commentary
2018 request to pay), cross-border payments, 2015 Bahrain has seen a six-fold increase in
social and tax compliant invoicing, transaction numbers and a tripling of the
enhanced business requests, payments/ value being transferred. By continuing
Average daily volume requests with documents and insurance Average daily volume
940,625 17,260 (2019) growth similar to what was demonstrated
claims. from 2018 to 2019, it has become the
country with the largest annual percentage
Average daily value Commentary Average daily value volume growth.
AUD 932.37 M NPP has seen transaction volumes and BHD 1.49 M (2019)
values more than double in last 12 months
Payment applications supported (214 percent & 231 percent respectively). Payment applications supported
P2P, P2B, B2P, B2G, B2B, G2P through online In March 2020, NPP Australia (with SWIFT) P2P, P2B, P2G through internet banking,
and mobile banking. launched a new version of the NPP API mobile banking, benefit pay and branch
sandbox to meet the evolving needs of the channels.
expanding NPP ecosystem.
Open Access API interface (y/n)
Yes Open Access API interface (y/n)
No
Page 11FLAVORS
OF FAST
2020
BRAZIL BULGARIA
Name Overlay Services Name Overlay Services
SITRAF Replacement service (PIX) to offer P2P, P2B, SCT Inst for local currency NA
B2B, P2G & B2G, with account aliases, QR
Year live code initiation and use of NFC technologies Year live Commentary
2002 at POS. 2018 SCT Inst rule-book-based service in
local currency (the lev), overseen by the
Average daily volume Commentary Average daily volume Bulgarian national bank and settled
3.8 million (May 2019 - April 2020) With strong growth in volumes and values NA through TIPS.
transacted (140 percent & 111 percent
respectively), the long-established service
Average daily value is upgrading to ISO 20022 in late 2020, with Average daily value
BRL 24.2 billion (May 2019 - April 2020) an ambitious new instant payment scheme, NA
called PIX. It will allow citizens, companies
Payment applications supported and government entities to make instant Payment applications supported
P2P & P2B through online and mobile payments 24/7 through mobile phones, P2P
banking. online banking and ATMs with open
banking capabilities.
Open Access API interface (y/n)
Open Access API interface (y/n) Planned option
No
Page 12FLAVORS
OF FAST
2020
CHILE CHINA
Name Overlay Services Name Overlay Services
TEF (Transferencias en Línea) NA IBPS (Internet Banking Payment System) P2P, POS (NFC tap), bill payment, QR code,
wealth management, direct debits and
Year live Commentary internal corporate transfers (sweeps).
2008 TEF payment service is built on an RTGS Year live
service and is based on the ISO 8583 format. 2010 Commentary
Average daily volume There are no plans for ISO 20022 migration. China has seen strong growth in volumes
811,788 (Q1 2020) Average daily volume and values transacted (115 percent and
38.3 M (2019) 124 percent respectively) as a broader array
of services like wealth management and
Average daily value e-wallet support become available. China's
NA Average daily value digital payments landscape is dominated
RMB 303.5 B (2019) by Alipay and WeChat Pay; the two wallets
Payment applications supported combined hold about 90 percent market
P2P, P2B & B2B Payment applications supported share.
P2P, P2B & B2P
Open Access API interface (y/n)
No Open Access API interface (y/n)
No
Page 13FLAVORS
OF FAST
2020
CZECH
CROATIA
Name Overlay Services
REPUBLIC
Name Overlay Services
SCT Inst for local currency Alias service linking mobile phone number RTPE NA
or email to IBAN.
Year live Year live Commentary
2020 Commentary 2018 Based on the SCT Inst rulebook and using
SCT Inst rule-book-based service in local ISO 20022 formats, the Czech immediate
Average daily volume currency (the kuna). Average daily volume payment service also supports Hungarian
NA NA florins as well as local Czech koruna.
Average daily value Average daily value
NA NA
Payment applications supported Payment applications supported
P2P, P2B, B2P & B2B P2P, B2B & P2B
Open Access API interface (y/n) Open Access API interface (y/n)
NA NA
Page 14FLAVORS
OF FAST
2020
EUROPE
SEPA - 20
COUNTRIES
DENMARK
Twenty countries: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy,
Latvia, Lithuania, Luxembourg, Malta, Monaco, the Netherlands, Portugal, Slovakia, Slovenia & Spain.
Excludes nine non-euro countries (Bulgaria, Croatia, Czech Republic, Hungary, Iceland, Norway,
Poland, Romania & Sweden) and two opt-out countries (Denmark & United Kingdom).
Name Overlay Services Name Overlay Services
Straksclearingen Alias service (phone number or email), SCT Inst (SEPA Credit Transfer Instant Available services vary per SCT Inst
mandate management (approve on behalf payments) implementation but include account
Year live of debtor), request to pay, with built-in aliases (mobile number), request to pay
2014 detection of fraud patterns and anti-money Year live (launching November 2020), retail POS, NFC
laundering screening. 2017 initiation, QR code payments, bill payment,
government payments, payee confirmation
Average daily volume and identification, etc.
NA Commentary Average daily volume
The Danish payment service is not currently 106.35 M Transactions (2018)
part of the SCT Inst but is planning to join Commentary
Average daily value Scandinavian neighbors on the P27 service The European Payments Council (EPC)
DKK 0.9 B (2017) in 2021. Average daily value created the regional Instant SEPA Credit
NA Transfer scheme called SCT Inst. Each
Payment applications supported service provider is free to choose when they
P2P, P2B, B2B & e-wallet through online and Payment applications supported participate, and 20 countries are now live.
mobile banking channels P2P, P2B, B2P, B2B & B2G with mobile and Multiple clearing and settlement options
internet including pull-payments and POS for increased flexibility and competition
payments capability. including RT1, STET, TIPS (Target2) and
Open Access API interface (y/n) Equens. In July 2020 the ECB took steps
Yes to harmonize the SCT Inst landscape by
Open Access API interface (y/n) mandating that TIPS be reachable, and
Planned option other CSMs must offer interoperability.
As of July 2020, the SCT Inst transaction limit increased, from 15,000 to 100,000 euros,
Page 15 to drive higher-value business-to-business and business-to-consumer transactions.FLAVORS
OF FAST
2020
HONG
GHANA
Name Overlay Services
KONG
Name Overlay Services
GIP QR code-based payments, bill payment FPS (Faster Payment System) Account alias (mobile number or email), QR
and alias capability USSD code or mobile code interoperability, e-wallets, request to
Year live number. Year live pay and direct debit payment.
2007 2018
Commentary Commentary
Average daily volume GIP again shows strong growth, Average daily volume The dual-currency service (HKD and RMB)
1,921.46 (1H 2019) quadrupling volume and more than HKD 163,149 & RMB 711 saw strong growth in its first full year
doubling value. This has been accelerated of operation, demonstrated by a near
by almost 100 percent of all G2P and G2G doubling of daily volume and a 40 percent
Average daily value payments on transacting on GIP. Average daily value increase in value for HKD transactions. RMB
3.24 GH¢'M (1H 2019) HKD 2.63 B & RMB 40 M volume and value both dropped.
Payment applications supported Payment applications supported
P2P, P2B, B2P, B2B, P2G, B2G & G2G through P2P, P2B, B2P, B2B, P2G & B2G
Internet banking, mobile banking and
branch transfers Open Access API interface (y/n)
No
Open Access API interface (y/n)
No
Page 16FLAVORS
OF FAST
2020
HUNGARY
Name Overlay Services
ICELAND
Name Overlay Services
GIRO RealTime24/7 Request to pay, account aliases (mobile Greidsluveitan NA
number, email or tax identifier), direct
Year live debits and bill payments, multiple IDs per Year live Commentary
March 2020 account. Corporate batch payments due to 2001 Iceland is currently upgrading from a legacy
launch in Q3 2020. mainframe operation to a new service
Average daily volume Average daily volume based on ISO 20022 formats. It is expected
NA Commentary 1 million (2018) to join Scandinavian neighbors on the P27
The central bank (MNB) introduced instant service in 2021 (multi-currency with krona
payments in March 2020. Thirty-five and euro).
Average daily value payment service providers (PSPs) had to Average daily value
NA prepare for the launch and delivered more NA
than one million successful transactions in
Payment applications supported the first three days. Payment applications supported
P2P & P2B through internet banking, mobile P2P, B2B & B2P
banking and phone banking .
Open Access API interface (y/n)
Open Access API interface (y/n) No
NA
Page 17FLAVORS
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2020
INDIA
Name Overlay Services
JAPAN
Name Overlay Services
IMPS (Immediate Payment Service) and UPI Balance enquiry, payee confirmation, Zengin Remittances, collections, government
(Unified Payments Interface) bill payments, POS payments, split bill payments, bonuses, stock dividends, bulk
payments, foreign inward remittances, Year live payments, pension funds, health insurance
Year live account alias services, request to pay, direct 1973 funds, state tax refunds, etc.
2010 (IMPS) & 2016 (UPI) debits, mandate authentication, recurring
payments, QR based payments, NFC, BLE Average daily volume Commentary
(Bluetooth low energy) and UHF (ultra-high 3.93 M (2019) The growth in numbers remains static year
Average daily volume frequency), payments through WhatsApp,
41.4 M (2019-20) over year, but after almost fifty years of
Google Pay and others, and extended operation and evolution (originally a RTGS
business payment services. Average daily value
JPY 8.1 T (2019) service), Zengin offers real-time payments
Average daily value across the personal, retail, corporate and
INR 122.5 B (2019-20) Commentary government sectors.
India continues to grow its real-time activity, Payment applications supported
Payment applications supported with volume more than doubling this P2P, P2B, B2B, B2P, P2G & B2G
P2P, P2B, B2B & P2G year, coupled with an 80 percent increase
in transaction value. The UPI (Unified Open Access API interface (y/n)
Payments Interface) encourages and No
Open Access API interface (y/n) facilitates payment innovation with now
Yes overlay services growing in sophistication.
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2020
KENYA
Name Overlay Services
MALAYSIA
Name Overlay Services
PesaLink Account alias service (mobile number) with RPP (Real-time Retail Payments Platform) Account alias, request to pay, e-mandates
USSD, government payments for eCitizen direct debit, cross-border (Singapore and
Year live services. Year live Thailand) and QR code payments at POS
2017 2019 (national QR Standard).
Commentary
Average daily volume PesaLink continues to grow with new Average daily volume Commentary
14,000 mobile overlay services, especially state NA After a successful launch last year, RPP has
payments (P2G & B2G), and the ability to experienced the progressive introduction of
send money to someone not registered on new payments services, including QR code
Average daily value PesaLink. Average daily value payments, pull payments, e-mandates, real-
NA NA time debits and cross-border payments.
Payment applications supported Payment applications supported
P2P, P2B, B2B, B2P, B2G & P2G through P2P, P2B, B2B and B2G payments through
mobile, internet banking, ATM & branches mobile and internet banking
Open Access API interface (y/n) Open Access API interface (y/n)
No Yes
Page 19FLAVORS
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2020
MEXICO
Name Overlay Services
NIGERIA
Name Overlay Services
SPEI (Sistema de pagos electronicos Account alias (mobile or debit card NIP (NIBSS Instant Payment) Currently developing picture
interbancarios) number), request to pay, QR code, NFC and authentication, account alias (NIP Central
POS terminals and recurring payments. Year live Listing), chat banking, merchant mobile
Year live 2011 services, bill payments, name enquiry and
2004 Commentary transaction status query.
The surge in overlay services on SPEI (an Average daily volume
Average daily volume established RTGS service) has seen a 40 3.4 M (2019) Commentary
2.52 M transactions (Apr 2019 - Mar 2020) percent increase in transaction volume Growth remains strong with almost 50
in a traditionally cash-heavy market. New percent increase in volume, moving 25
request to pay services and emerging Average daily value percent more value compared to 2018. The
Average daily value QR code, NFC and real-time payments NGN 299.5 B growth in overlay services continues with
MXN 739 B (Apr 2019 -Mar 2020) at retail outlets are expected to maintain new bill payments, photo identification and
this growth. Payment applications supported proxy payments.
Payment applications supported P2P, P2B & B2B through internet banking,
P2P, P2B, B2B & B2P mobile, ATM, POS and branch.
Open Access API interface (y/n) Open Access API interface (y/n)
No No
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2020
NORWAY
Name Overlay Services
PHILIPPINES
Name Overlay Services
Straksbetalinger Mobile payments solution, currently InstaPay QR Code payments (national standard),
developing bill payments, mobile account alias (phone number or email) and
Year live commerce, in-store payments, in-app Year live government payments.
2012 payments, etc. 2018
Commentary
Average daily volume Commentary Average daily volume After its first full year in operation, InstaPay
NA Straksbetalinger is a domestic real- 136,263 (Apr 19 to Mar 20) has tripled transaction numbers and seen
time payments scheme, launched by a an almost five-fold increase in the value
consortium of banks. Current service is being transferred. As of early 2020, 45
Average daily value upgrading to an ISO 20022 service based on Average daily value financial institutions offer InstaPay; the
NA the SCT Inst rulebook but does not yet plan PHP 969M (Apr 19 to Mar 20) central bank strives to increase the value of
to join Scandinavian neighbors on the P27 e-payment transactions by 30 percent by
Payment applications supported service. Payment applications supported the end of 2020.
P2P through internet and mobile. P2P, P2B, P2G, B2P, B2B, B2G, G2P, G2B
& G2G through mobile apps and internet
Open Access API interface (y/n) banking.
No
Open Access API interface (y/n)
Yes
Page 21FLAVORS
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2020
REPUBLIC
POLAND
Name Overlay Services
OF KOREA
Name Overlay Services
Express ELIXIR Payment confirmation, government and HOFINET Bill payments, insurance premiums and
tax administration payments, account newspaper fees.
Year live alias (phone number), bill payments, split Year live
2012 payments. 2001 Commentary
With modest but strong growth in the
Average daily volume Commentary Average daily volume volume and value in transactions in what
93,000 (2019-20) Faster payments are widely used to 12.17 M (2018) is an already highly digitized economy,
make instant loan repayments and bill South Korea has launched an open banking
payments, which are settled in real time. service to boost convenience and lower
Average daily value With transaction numbers doubling and Average daily value transaction costs for customers.
PLN 138.85 M (2019-20) a 50 percent increase in the value being KRW 51.8 T (2018)
transferred in a country where credit cards
Payment applications supported are less prevalent, real-time payments are Payment applications supported
P2P, B2B, P2B, P2G & B2G through mobile targeted at driving e-commerce. Plans to P2P & P2B through internet and mobile
and internet introduce a euro instant payment service banking.
are underway.
Open Access API interface (y/n) Open Access API interface (y/n)
Yes No
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2020
SAUDI
ROMANIA
Name Overlay Services
ARABIA
Name Overlay Services
Plăți Instant Account alias (phone number) in Real-time payments NA
development, retail POS, bill payments,
Year live electronic invoices, employee remuneration Year live Commentary
2019 and urgent B2C payments for needs like 2019 Saudi Arabia conducted its first real-
disaster relief/aid. time payment trials last year, and plans
Average daily volume Average daily volume widescale pilots this year with rolling launch
NA Commentary NA into 2021.
Romania launched instant payments in
April 2019. Many banks are in the process
Average daily value of offering instant payment services to their Average daily value
NA customers. Currently, instant payments can NA
be made only in lei, but planning SCT Inst
Payment applications supported payments in euros. Payment applications supported
P2P, B2B & B2P P2P, P2B, B2P & B2B
Open Access API interface (y/n) Open Access API interface (y/n)
Yes No
Page 23FLAVORS
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2020
SOUTH
SINGAPORE
Name Overlay Services
AFRICA
Name Overlay Services
FAST Payee confirmation (nickname), joint RTC (Real Time Clearing) Developing replacement with QR code
account holders (ID and/or mobile standardization mobile payments, account
Year live numbers), payment scheduling, direct Year live alias and request to pay.
2014 debits, bill payment, standardized QR 2006
code based payments, account alias Commentary
(mobile number or Singapore NRIC/FIN Despite strong growth of more than 60
Average daily volume number), cross-border payments (Malaysia Average daily volume
220,994 86,000 (2018) percent in volume and 30 percent in
and Thailand), student grants, pension value, real-time payments make up only
payments, insurance claims, etc. two percent of total retail payments,
Average daily value Average daily value largely due to high fees, use of ISO 8583
SGD 377.5 M Commentary ZAR 1.2 B (2018) messaging restrictions, narrow use cases,
FAST continues to see strong growth with and customer lack of awareness. An
Payment applications supported another 50 percent increase in volume and Payment applications supported updated ISO 20022 version is currently in
P2P, P2B, B2B & B2P value matching previous year, driven mostly P2P, P2B, B2B & B2P development, planned to go live in 2021.
by emerging, innovative open API-enabled
services.
Open Access API interface (y/n) Open Access API interface (y/n)
Yes No
Page 24FLAVORS
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2020
SRI LANKA
Name Overlay Services
SWITZERLAND
Name Overlay Services
CEFTS Bill Payments, merchant payments, direct SIC (Swiss Interbank Clearing) NA
(Common Electronic Fund Transfer Switch) debits, request to pay, account alias
(mobile number or unique nicknames), Year live Commentary
Year live credit card settlement, national QR code 1987 Swiss Interbank Clearing (SIC) is a business-
2015 standard and e-wallet. oriented service and cannot support P2P
Average daily volume payments, but does focus on real-time B2B,
Average daily volume Commentary 2.6 M B2P and P2B payments, credit transfers and
21,918 With a steady growth of 11 percent in bill pay.
volume and 25 percent in value being
transferred, CEFTS is seeing new services for Average daily value
Average daily value CHF 158 B
LKR 2.25 B smaller retail payments and pull payments,
and the new QR code service will likely drive
mobile usage. Payment applications supported
Payment applications supported P2B, B2B & B2P (not P2P)
P2P, P2B, P2G & B2B through mobile,
internet, ATMs and POS
Open Access API interface (y/n)
No
Open Access API interface (y/n)
No
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2020
THAILAND
Name Overlay Services
TURKEY
Name Overlay Services
PromptPay Request to pay, standardized QR code Retail Payment System (RPS) NA
payments, account alias service (phone
Year live number, Thai ID or company registration), Year live Commentary
2017 request to pay, payee confirmation, 2013 RPS continues to grow steadily with a 25
corporate payments, cross-border payments percent increase in volume and value over
to Singapore and government payments (tax, the last year but has no plans for ISO 20022
Average daily volume VAT, pension, welfare, fines, etc.). Average daily volume
7.03M (2019) 2.8 M (2019) migration.
Commentary
Average daily value With strong growth of almost 250 percent Average daily value
THB 36.1 B (2019) in volume and value, PromptPay continues TRY 77.7 B (2019)
to roll out additional overlay services for
Payment applications supported consumer, retail, business and government Payment applications supported
P2P, P2B, G2P, P2G, G2B & B2G through ATM, payments. Full ISO 20022 support is P2P, P2B & B2B
mobile and internet banking. planned for 2021.
Open Access API interface (y/n)
Open Access API interface (y/n) No
No
Page 26FLAVORS
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2020
UNITED
KINGDOM
Name Overlay Services
USA
Name Overlay Services
Faster Payments Request-to-pay service (pilot May RTP (Real-Time Payments) Payment confirmation, request for payment
2020), account alias (mobile number), (e-invoice or e-billing), payment queries,
Year live Confirmation of Payee, third-party Year live remittance advice, scheduled payments.
2008 beneficiary payments, standing order 2017
payments, forward dated payments, Commentary
return payments, direct corporate access The Clearing House is working to ensure
Average daily volume (bulk payments, just-in-time payments, Average daily volume
7 M (2019-20) NA U.S. institutions of all sizes can access the
emergency payouts, insurance, payday RTP network but other schemes competing
loans, etc.) for real-time payments include Zelle® (live
Average daily value Average daily value with P2P only) and the Federal Reserve’s
GBP 5.4 B (2019-20) Commentary NA FedNow (reports intentions to go live in
U.K. growth is steady at 20 percent and the 2023 or 2024), while the Faster Payments
Payment applications supported New Access Model ensures service provider Payment applications supported Council (FPC) is working with Industry
P2P, P2B, B2B, B2P, G2B and G2P through and new entrant participation, without P2P, P2B, B2B, B2P, A2A & G2P through stakeholders to support the widespread
mobile or online. significant investment. New Payments mobile and internet. use of faster payments.
Architecture under development will be ISO
20022-based.
Open Access API interface (y/n) Open Access API interface (y/n)
No No
Page 27FLAVORS
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2020
Under Development
Canada Peru
The Real-Time Rail (RTR), managed by The new immediate payments service will be
Payments Canada, is expected to launch fully real time and operate 24/7, but there is
in 2022. Payments Canada's original plan no proposed live date. Currently, payments
for the RTR launch consisted of multiple can be cleared in under 30 seconds, but only
releases, with the first in 2020, and future during bank working hours. The real-time
releases to deliver additional functionality. payment capability will be augmented with
Following consultation with key industry the potential for multiple overlay services.
partners, Payments Canada determined that Top priority is a request-to-pay service and
a single later release was the more efficient the use of account aliases with a proxy
VIETNAM
implementation approach. lookup service. The service will cater to
government, consumers, businesses and
It will operate 24/7 and ensure near real-time financial institutions.
delivery of low-value payments in seconds.
RTR supports overlay services as a platform Indonesia
for payments innovation. To complement Indonesia’s central bank announced
RTR, the government is exploring open extensive plans to improve the country’s
banking, also known as consumer-directed payment infrastructure over the next five
finance. The intent of open banking is to give years. The Indonesia Payment System Vision
Name Overlay Services customers greater control of their financial Blueprint 2025, launched on November
NAPAS Account alias (mobile number) and e-wallet data and safe access to a wider range of 2019, aims to open access to financial
(National Payment Corporation of Vietnam) support. financial services, while reducing costs. RTR services for 91 million people and 62.9
will support the development of overlay million small to medium-sized enterprises.
Year live Commentary services to serve as a platform for innovation Bank Indonesia launched a QR Code
2020 In a cash-heavy market, the switch to for consumer, commercial and government standard for payments through server-
electronic real-time payments is growing, payment services. based e-money applications, electronic
Average daily volume as evidenced by the number of interbank wallets and mobile banking known as QR
NA transfers last year. These accounted for New Zealand Code Indonesian Standard (QRIS) as a part
nearly 50 percent of all transactions, The New Zealand payments industry is of the roll-out.
indicating moves away from cash. a light-touch regulatory environment,
Average daily value
NA preferring a cooperative model driven
though stakeholder members at Payments On the Radar
New Zealand. The open banking initiative
Payment applications supported for real-time payments was launched in Colombia
P2P & P2B through internet, mobile 2016 and is driven by the need to provide Colombia has announced the plan to
banking, ATM, POS a modernized payments system and move toward a real-time payment service
more open banking environment that offering instant credit, debit transfers and
Open Access API interface (y/n) offers scope for innovation. The real-time e-commerce. These consumer and business
No payments service, currently named FastAs, payments would cover low-value credit
initially had a placeholder live date of 2025, transfers which typically include payroll,
but that is likely to be brought forward. pension, supplier and tax payments.
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2020
REAL-TIME The opportunities
In a recent survey conducted by FIS
about corporate liquidity, executive-level
respondents ranked real-time treasury
as a higher-priority digital initiative than
real-time payments
bring to corporate
PAYMENTS
robotic process automation and artificial
intelligence. But in the wake of COVID-19,
Andrew Bateman, executive vice president treasury
for FIS capital market solutions buy-side,
AND CORPORATE
says intraday and real-time liquidity Despite all the opportunity that real-time
reporting has become even more capabilities can offer, Bateman says the
important as chief financial officers seek typical corporate treasury function still
out more frequent and accurate reporting operates on a 9-to-5 basis. While large
TREASURY
of working capital. Here’s a closer look at global companies typically have a number
the impact real time has already had on of treasury centers in different time zones,
corporate treasury functions and what these centers are focused on regional
role real-time payments could play in treasury activity. The introduction of
redefining what the future looks like for real time in corporate treasury could
corporate treasury. transform the entire cadence and
transparency of a treasury operation.
Page 29FLAVORS
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2020
“They’d gain the ability to look As real-time uptake increases, Bateman
predicts that the next phase of emerging How APIs will “Over the next five years, APIs
at global treasury activity with will drive adoption of treasury
changes in account balances and
use cases will likely apply to the collections
or accounts receivables process,
influence real-time solutions, like those from FIS,
currency positions happening particularly where instant payment terms treasury adoption that provide the ability to
could lead to a discount.
in real time across all regions. For a corporate treasury to implement have a real-time view. Wider
The on-demand nature of real 24/7 instant payments, there is a need adoption will provide the
time could mean a change to The role of real-time to invest in modern cash management
opportunity to take advantage
technology that operates in real time,
forecasting processes or daily cross-border supporting real-time position updates, of other API-based services.
cash processes, and they would in treasury API connectivity for bank data and real-
time cash positioning and forecasting. Real-time payments are a
need the ability to adapt and natural opportunity to be able
respond to changes in balances Given the evolution of technology “Treasurers expect treasury technology to respond to either high-value,
facilitating cross-border payments and providers like FIS to offer solutions
throughout the day,” opportunity for significant cost savings, that optimize a cash forecast and help
urgent or B2C payments, if
says Bateman. cross-border payments also rank high on navigate continued market and economic you're in an area where you
the radar for many multinationals. uncertainty,” says Bateman. “I believe need to satisfy customers'
this is a huge opportunity for treasury
While Bateman says real-time payments “From a treasury perspective, larger departments to contribute to the digital demand instantaneously or gain
have been slower to emerge in corporate enterprises are complex. They have footprint and digital user experience of visibility of what’s coming into
treasury compared to the business-to- international business, foreign exchange, the company.”
consumer space, there are two business
your account,” says Bateman.
global operations, inter-company loans,
sectors—insurance and airlines—that external borrowings and interest rate He explains that although all treasury
have already put real-time payments to hedges. That’s where SWIFT gpi comes in,” departments know how to handle urgent
use in the claims payment process and says Bateman. transactions or wires, real-time payments
issuance of refunds. are leveraging new technologies that are
typically based on API connectivity, which
“Our payments solutions teams partner is usually not supported by older payments
“We have a number of insurance closely with SWIFT and offer great tools infrastructure.
customers looking at using real-time such as GPI dashboards to provide greater
payments through our payment factory insight into cross-border payments.”
solution. In this case, a policy holder
making a lower-value claim could be He notes that mid and smaller-sized
assessed and settled in real time. We customers who are not using SWIFT could
recently completed a project with a use FIS’ Bankout solution, integrated with
leading insurance company wanting to FIS’ SaaS treasury solution, to facilitate
settle real-time claims for its business in real-time cross-border payment needs.
Asia, where we integrated into the claims
management process and used the local
instant payment network to initiate a real-
time payment into the client’s account.”
Page 30FLAVORS
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2020
How technology
will drive real-time
corporate treasury
in the future
“Real-time payments have become
a focus of the fintech market and this
has accelerated the availability of B2C
payment channels tremendously,”
says Bateman. “The fast pace of this
market clearly is a driver for corporate
treasuries to invest in payment
technology to keep up. As a major
technology provider, we naturally work
with banking partners who serve the
same corporate treasury customers to
improve the client experience through
real-time technology. We continue
to see a growing number of banks Just as we’ve seen in the consumer
maturing their API offerings.” market, changing expectations for what
a payment experience should be will also
contribute to the prevalence of real-time Real-time adoption in corporate
Bateman predicts that APIs will be payments in corporate treasury. “You treasury may still be in its infancy, but
the biggest influence in the evolution can already see it from a small business it’s not for a lack of interest or action
of real time in corporate treasury perspective where you can make an on behalf of those who most stand to
and says their role should not be instant payment and settlement, whether benefit from it. “The infrastructure that
underestimated. “Some of the larger you're buying an ice cream or paying operates 24/7 is costly and makes the
global cash management banks are your plumber. It's just the question of business case important. We have seen
driving this activity in partnership with when that expectation influences larger a rapidly increasing number of corporate
the fintechs and these banks continue organizations,” says Bateman. treasuries embarking on digitalization
to expand their service offerings. projects supporting the digital end-user
There is a lot of work being done on experience,” says Bateman. “Getting
integration and I think that’s where payments and infrastructure ready and up
there's an opportunity to be disruptive, to speed seems critical in order to be best
with many providers focused on APIs positioned to maximize the opportunities
and streamlining connectivity. Once you from a real-time payments world.”
get that right, it makes everything else
easier,” says Bateman.
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