PAYMENTS STRATEGY FPAI WORKING GROUP FINDINGS AND RECOMMENDATIONS - Fintech & Payments Association of Ireland
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PAYMENTS STRATEGY FPAI WORKING GROUP FINDINGS AND RECOMMENDATIONS
FOREWARD
Payments is one of the fastest growing and largest industries
in the world. Ireland has a long track record of success in
payments, both with indigenous firms that have scaled
globally and in attracting some of the world’s largest payment
businesses to Ireland, employing ten of thousands of people.
Now is the time to build on this success by implementing key
strategic actions, with commitment and haste.
BACKGROUND
This report has been complied by the Payments Working
Group (PWG) set up under the IFS2020 Strategy. The PWG
has been coordinated by the Fintech and Payments
Association of Ireland (FPAI), Enterprise Ireland and the IDA.
This is an industry report containing findings and
recommendations which the PWG believe will significantly
contribute to the achievement of the vision and objective of
the IFS2020 Strategy.
June 2016 WWW.FPAI.IE 2SUMMARY
The Payments Working Group (PWG) was established in
late 2015 under the IFS2020 Strategy and Action Plan for
2016. The PWG was assigned the action to produce a
proposed Payments Strategy. The group met over several
months with active participation from firms and industry
bodies.
The core findings of the group are:
Ireland has an excellent record of success in payments
– with both local and foreign firms employing large
numbers and competing globally;
To innovate further and attract more businesses into
the sector we should clarify who has the mandate to
promote competition and innovation in the sector;
As a multi stake-holder environment we must ensure
that engagement is inclusive, regular and appropriate;
Nationally we must excel at the adoption and use of
digital payments and embrace future and new
developments with haste and enthusiasm.
The PWG also noted that the industry had been very
effective in its organisation and that there was very strong
alignment on the finding and recommendations. It also
noted a great sense of ambition and anticipation within
the industry.
June 2016 WWW.FPAI.IE 3VISION &
ECOSYSTEM
June 2016 WWW.FPAI.IE 4VISION
“Position Ireland as country of choice for foreign
and indigenous payments companies, building on a
well developed & successful ecosystem, covering all
aspects of payments, including ancillary services.”
The Irish Payments ecosystem will be an
innovative and vibrant industry which will be
attractive to investors and workers alike;
It will be the centre of development of world
class and leading payment solutions;
Underlying payment systems and schemes will
be accessible, reliable, secure and fast;
Access for new entrants will be encouraged,
straight-forward and be supported by an
engaged and receptive regulatory regime;
Technical standards will be open and easy for all
to use;
The Fintech and Payments Association of Ireland
(FPAI), will provide active support to new and
existing participants facilitating a collegiate
network of players in the world of payments.
We are creating a vision of what needs to happen to drive a
“leap forward” in the Irish payments industry thus adding value
to Government, Enterprise Ireland and IDA initiatives.
June 2016 WWW.FPAI.IE 5THE IRISH PAYMENTS ECOSYSTEM
The Irish payments ecosystem has a long track record of innovation and has
enormous opportunity for further jobs, scaling and internationalisation.
This is being driven by significant developments which are occurring at pace
and simultaneously, such as the changes in technology, regulation, Brexit
and investor appetite for the sector.
SWIFT. Domestic & Int‘
FX Bureaus, Card Systems SEPA, T2, BACS, FPS, etc.
Issuers &
e-Wallets Networks
FinTechs
Payment Credit, Debit,
Schemes Store etc.
PSPs,
MSPs Card
Schemes
Data,
Identity
Traditional
FI‘s
Security
& Auth
Payments
PAYMENTS
ECOSYSTEM
Ecosystem
Personal CBI
Cash Consumer
Protection,
Merchants Risk
DOF
IFS2020, NPP
SMEs & EU
Corp
Utilities & FPAI
Govt BPFI
EPC, EBA, FCA, FSA
While there are numerous ways to segment and describe the
payments industry, it is clear that it is a multi stake-holder
environment – made up of public sector bodies, infrastructure &
service providers along with the users of the payment services. To
ensure that Ireland develops the best international payments
industry all the stake-holders must collaborate and buy-in to the
vision of Ireland being a global leader in payments.
June 2016 WWW.FPAI.IE 6THE IRISH PAYMENTS ECOSYSTEM
Ireland has an excellent track record in payments. Many of the world’s
leading payment businesses have significant operation’s in Ireland, and
along with the banks and a host of payment processors and service
providers they employ tens of thousands of people across the country.
Credit Institutions Processing Services
Supporting Card Acquirers In-Store PoS FX Brokers
Technology Network Technology
eWallets
Prepaid Cards & e-Money Institutions Mobile & eCommerce Payments Closed Loop
Payment
Networks
June 2016 WWW.FPAI.IE 7FINDINGS & RECOMMENDATIONS June 2016 WWW.FPAI.IE 8
The objective of the Payments Strategy is to help
create an environment in which all stake-holders can
collaborate to:
Grow jobs in the industry
Facilitate domestic start ups
Attract foreign investment
Scale-up existing businesses
Thus delivering new and innovative solutions to the local and
global markets.
DEVELOPING THE STRATEGY
The strategy was developed by a payments working group
(PWG) set up under IFS2020. The PWG has undertaken:
A comparison of our payments ecosystem to other
locations in terms of licencing, authorisation, technology,
infrastructure, talent and incentives;
A process to find strengths and gaps by identifying the
make up of the industry, carrying out a survey and noting
issues to be addressed;
Work to define the payments ecosystem in Ireland,
sharing knowledge across Irish and multi national firms
from a licensing perspective and researching
developments in other markets.
A summary of the issues identified and related
recommendations follow…
June 2016 WWW.FPAI.IE 91 - COMPETITION
Competition in any industry is a catalyst for innovation and
development, which in turn delivers consumers a wider choice of
services. In Ireland today, it is not clear as to who has the
leadership to call for competition and innovation in payments.
The working group found that some people incorrectly believe
this to be the Central Bank of Ireland.
The PWG recommends that Government clarifies who has the
mandate to drive initiatives and policies designed to encourage
competition and innovation in payments.
Furthermore the PWG recommend that Government should in
addition to promoting competition also:
promote innovation in systems and infrastructure;
ensure that payment systems are operated in the best
interest of users;
provide support to existing and new providers and;
ensure all players have equal access to information and
decision making.
Clarity of this leadership role is central to the achievement of the
vision of Ireland as a global leader in payments.
June 2016 WWW.FPAI.IE 102 – ENGAGEMENT
As an industry that is characterised by a multi stake-holder environment, it is
critical that engagement is effective, regular and appropriate.
With regard to the Central Bank of Ireland, the PWG give welcome recognition
to the recent changes made in the authorisation process. It is a process that
must be regularly enhanced bringing more transparency and certainty to the
process. Some interviewees, who are based in Ireland spoke about seeking
licences elsewhere, which warrants follow up.
In the area of pending payments legislation some firms are relying on
information secured via other regions as the necessary information was not
available via CBI or the Dept. of Finance.
The FPAI, along with EI and the IDA must continue to bring all industry
stakeholders and other partner organisations together, regularly.
Recommendations:
Both CBI and Dept. of Finance should each develop an “Industry
Engagement Framework” detailing how each body intends to engage with
prospects, new legislation, industry associations, online web site
enhancements, information updates and industry events;
CBI should follow up directly with any Irish based business (indigenous or
FDI) who have secured licences overseas to determine the rationale;
CBI should establish a “FinStart” unit to work with prospect and newly
regulated businesses with designated individuals assigned – ring fenced
from the authorisation/supervisory function.
The FPAI must continue to act as the engagement catalyst – running two
annual events, monthly meetups and quarterly partner fora.
Consumer engagement on payment solutions and new developments
should be jointly established.
June 2016 WWW.FPAI.IE 113 – PAYTECH – IRELAND
To deliver a world class payments industry Ireland must develop as a
nation that embraces new payment solutions with haste and enthusiasm.
We must lead in electronic, digital, mobile and be a “paytech” nation.
Across all sectors we should actively seek and encourage all forms of
electronic payments – promoting choice, safety and trust. To achieve this
we should:
Link in with other pan-European developments on e-identity and
develop a national position paper on digital identity;
Develop a suite of open APIs for automated AML supervision by CBI;
Review learnings from “Cork Cashes Out” and develop a new Pay
Smart City project with an IoT dimension – an international
showcase;
Develop a set of key e-payment measurements so as to establish a
benchmark for setting goals – social welfare, fines, local council
cheque acceptance etc.
Publish all payment statistics on a quarterly basis;
Ensure relevant university programmes have modules relating to
payments and broader digital economy;
Establish a commitment for all SEPA processors to implement SCT Inst
– the real time credit transfer service;
Ensure a commitment for all Irish account providers to open APIs;
Establish links with other international payment bodies and ensure
international collaboration at annual FPAI Fintech Nation and Fintech
Congress events;
Develop an industry wide consumer engagement plan highlighting
the benefits of e-payments.
June 2016 WWW.FPAI.IE 12INDEX
C1 The PWG recommends that Government clarifies who has the mandate to drive initiatives and
policies designed to encourage competition and innovation in payments.
C2 The PWG recommend that Government should in addition to promoting competition also,
promote innovation in systems and infrastructure;
ensure that payment systems are operated in the best interest of users;
provide support to existing and new providers and;
ensure all players have equal access to information and decision making.
E1 Both CBI and Dept. of Finance should each develop an “Industry Engagement Framework”
detailing how each body intends to engage with prospects, new legislation, industry associations,
online web site enhancements, information updates and industry events.
E2 CBI should follow up directly with any Irish based business (indigenous or FDI) who have secured
licences overseas to determine the rationale.
E3 CBI should establish a “FinStart” unit to work with prospect and newly regulated businesses with
designated individuals assigned – ring fenced from the authorisation/supervisory function.
E4 The FPAI must continue to act as the engagement catalyst – running two annual events, monthly
meetups and quarterly partner fora.
E5 Consumer engagement on payment solutions and new developments should be jointly
established.
P1 Link in with other pan-European developments on e-identity and develop a national position
paper on digital identity.
P2 Develop a suite of open APIs for automated AML supervision by CBI.
P3 Review learnings from “Cork Cashes Out” and develop a new Pay Smart City project with an IoT
dimension – an international showcase.
P4 Develop a set of key e-payment measurements so as to establish a benchmark for setting goals –
social welfare, fines, local council cheque acceptance etc.
P5 Publish all payment statistics on a quarterly basis.
P6 Ensure relevant university programmes have modules relating to payments and broader digital
economy.
P7 Establish a commitment for all SEPA processors to implement SCT Inst – the real time credit
transfer service.
P8 Ensure a commitment for all Irish account providers to open APIs.
P9 Establish links with other international payment bodies and ensure international collaboration at
annual FPAI Fintech Nation and Fintech Congress events.
P10 Develop an industry wide consumer engagement plan highlighting the benefits of e-payments.
June 2016 WWW.FPAI.IE 13WORKING GROUP
Chairpersons: Ruth McCarthy, FEXCO & Maurice Crowley, Banking & Payments
Federation of Ireland.
Andrew McFarlane, Accenture Katie Thurston, IDA
Billy Hanley, Enterprise Ireland Michael Concannon, AIB
Brendan McCormack, Enterprise Ireland Michael Sheehy, Microsoft
Brian Hanrahan, Sentenial Michele Olin, AIB
Ciaran Cassidy, Realex Payments Richard Hanlon, Trust Vesta
JB McCarthy, University College Cork Sandra Higgins, Sysnet Global Solutions
John Phelan, Department of Finance Colin Duignan, Elavon
Karen Purcell, Microsoft Eric Horgan, Elavon
Adam Kissane, Deloitte
CONTACT DETAILS
For further information, feedback or discussion on any aspect of this report,
please contact the FPAI CEO, Richard Walsh.
richard.walsh@fpai.ie or info@fpai.ie
© FPAI - June 2016
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