open forum on pan-european instant payments€¦ · introductory presentation to open forum on...
TRANSCRIPT
Open Forum on
Pan-European Instant Payments
Kick-off meeting
Helaba, Frankfurt
30th March 2015
Welcome and introduction
Wolfgang Ehrmann
Chairman
Euro Banking Association
ECB / ERPB definition, vision and way
forward
Gilbert Lichter
Secretary General
Euro Banking Association
Introductory presentation to Open Forum on Pan-European Instant Payments
30th March 2015
ECB / ERPB definition, vision and way forward
4
1. “Pan-European instant payments in euro: definition,
vision and way forward” submitted to the ERPB by
the ECB (ERPB/2014/017)
2. Statement by the Euro Retail Payments Board
(ERPB/2014/018)
Contents
Introductory presentation to Open Forum on Pan-European Instant Payments
30th March 2015
ECB / ERPB definition, vision and way forward
5
Definition
“Instant payments” are hence defined as electronic retail payment
solutions available 24/7/365 and resulting in the immediate or close to
immediate interbank clearing of the transaction and crediting of the
payee’s account (within seconds of payment initiation), irrespective
of the underlying payment instrument used (credit transfer, direct debit
or payment card) and of the underlying clearing and settlement
arrangements that make this possible.*
* Footnote : Solutions like MyBank, Ideal, Sofort and similar ones are not seen
as instant payment solutions according to the definition in this note, as they
imply use of online banking applications, but do not offer immediate clearing
and crediting of the payee’s account, with concomitant availability to the payee
of the funds credited.
Introductory presentation to Open Forum on Pan-European Instant Payments
30th March 2015 6
Vision
… The expectation is that (at least) one pan-European euro instant
payment solution should become available to end-users in the short
term, consisting of a common scheme cooperatively developed on
the market or of multiple (ideally interoperable) schemes competitively
developed on the market, and mainly based on credit
transfers. The interface would preferably be multichannel.
The actual technical aspects of instant payment solutions should be left
to the industry, under the assumption that 24/7/365 availability,
immediate or close to immediate crediting of the payee’s account,
Europe-wide reach and interoperability should be ensured.
ECB / ERPB definition, vision and way forward
Introductory presentation to Open Forum on Pan-European Instant Payments
30th March 2015
• … a European market for instant payments characterised by
fragmentation and competing, non-interoperable solutions will be sub-
optimal and would require a harmonisation and integration effort soon.
• This calls for action from the supply side of the market. As retail
payments are a network industry, a reinforced cooperative approach -
between incumbent and new PSPs - would help achieve an open and
competitive market for instant payments at a pan-European level.
7
ECB / ERPB definition, vision and way forward
Introductory presentation to Open Forum on Pan-European Instant Payments
30th March 2015 8
Conclusions
… In order to facilitate the emergence of safe and efficient instant
payment solutions in Europe, progress in the scheme layer, the
clearing layer and the settlement layer is needed and, in order to
avoid fragmentation, efforts should be put in attaining greater
harmonisation and standardisation; other relevant issues are to be
addressed as well.
The actual way to deliver instant payment solutions to end-users in
the short term will be shaped by the interaction between public
authorities and the demand and supply side of the market.
ECB / ERPB definition, vision and way forward
Introductory presentation to Open Forum on Pan-European Instant Payments
30th March 2015 9
Conclusions (continued)
… In light of the above, the ERPB is invited to reflect and possibly agree
on:
• the need for the development and implementation of at least one
instant payment scheme for euro payments open to any payment
service provider in the EU;
• inviting the supply side of the industry (with the active involvement of
the EPC as a potential scheme developer) to make a feasibility
assessment of an instant payment scheme in euro to be presented at
the ERPB meeting in June 2015.
ECB / ERPB definition, vision and way forward
Introductory presentation to Open Forum on Pan-European Instant Payments
30th March 2015 10
ERPB statement
“Instant payments” are defined as electronic retail payment solutions
available 24/7/365 and resulting in the immediate or close-to-immediate
interbank clearing of the transaction and crediting of the payee’s account
with confirmation to the payer (within seconds of payment initiation)
irrespective of
• the underlying payment instrument used (credit transfer, direct debit or
payment card); and
• the underlying arrangements for clearing (whether bilateral interbank
clearing or clearing via infrastructures); and
• and settlement (e.g. with guarantees or in real time) that make this
possible
ECB / ERPB definition, vision and way forward
Introductory presentation to Open Forum on Pan-European Instant Payments
30th March 2015 11
ERPB statement (continued)
• Providers should not adopt a “silo” approach offering closed-loop non-
interoperable instant payment solutions
• Instead: a “layered” approach should be taken by developing solutions
for end-users…leveraging on
– the current payment instruments (first layer); and
– the underlying clearing and settlement infrastructures (second and third
layers).
• Solutions should take advantage where possible of the harmonisation
and integration already achieved with the SEPA project, preventing the
emergence of a fragmented European market for instant payments in
euro
ECB / ERPB definition, vision and way forward
Introductory presentation to Open Forum on Pan-European Instant Payments
30th March 2015
ERPB statement (continued)
…taking into account emerging national solutions and in order to prevent
market fragmentation, the members of the ERPB agreed on:
• the need for at least one pan-European instant payment solution for
euro open to any payment service provider (PSP) in the EU
• inviting the supply side of the industry (in close cooperation with the
demand side and with the active involvement of the European
Payments Council as a potential scheme developer) to make an
assessment of the issues related to pan-European instant payment
solutions in euro to be presented at the ERPB meeting in June 2015.
12
ECB / ERPB definition, vision and way forward
Scope of the Open Forum and
Terms of Reference
Gilbert Lichter
Secretary General
Euro Banking Association
Introductory presentation to Open Forum on Pan-European Instant Payments
30th March 2015
Scope of the Open Forum
Initiated by the EBA in response to ERPB’s call for action, the Open
Forum on Pan-European Instant Payments is geared at fostering a
practitioners’ dialogue on service requirements for instant
payments
• Key objective: support the “migration of minds” towards instant
payments
• Participation: open to PSPs, PSUs, suppliers and other relevant
stakeholders in the payments industry
• Modus operandi: an open forum to which EBA provides
logistical/administrative support, meeting in principle on a bi-monthly
basis
14
Introductory presentation to Open Forum on Pan-European Instant Payments
30th March 2015
Deliverables of the Open Forum
• Provide input to the upcoming instant payment discussions in Europe
• Explore perimeter for infrastructure services to support instant
payments
• Liaise with entities engaged in evaluating related industry initiatives at
European and global level
• [Optional:] Publication of common understanding and insight on
certain topics and issues to the wider market, based on an
endorsement by a majority among the participants. Such
communication would list the names of the PSPs endorsing the
position.
Terms of Reference:
https://www.abe-eba.eu/N=ToR_Instant_Payment_Forum.aspx
15
Introductory presentation to Open Forum on Pan-European Instant Payments
30th March 2015
Proposal of a coordinator
Excerpt from ToR
“The EBA…will propose a Coordinator of the Forum. The Coordinator will
support the Forum by, inter alia, issuing calls for meetings and proposed
agendas. The Coordinator will prepare reports on discussions and
activities of the forum as appropriate.”
16
Antitrust Compliance in the Open
Forum on Pan-European Instant
Payments
– Do’s and Don’ts
www.steptoe.com
Open Forum Meeting, 30th March 2015
Best Practices
Open Forum meetings to strictly comply with EU antitrust
law
– Avoid engaging in any activity that would infringe or give the
appearance of infringing EU antitrust law
– Responsibility for both EBA and individual companies
participating in the Open Forum
Open Forum meetings to follow pre-defined agendas
– No unannounced deviations from agenda items
Minutes of the discussions in the Open Forum meetings to
be compiled and drafts circulated for review and approval
Revert to compliance/legal officer in case of doubts or
concerns as to a specific issue
18
Red Flags Do not share commercially sensitive information
– Exchanges on intended prices and sales volume = cartel conduct
– Exchanges on current production, costs, business plans usually
highly problematic
– Do not participate in any statistical exercise, market survey or
benchmarking exercise that allows access to individualised
business sensitive information from the various reporting
companies
Do not discuss or agree with competitors:
– To limit supply of services, output, technical development or
investments
– To allocate markets or customers
– To exclude (potential) competitors or alternative solutions,
including boycotts
19
Overview of developments in the instant
payments domain
Hansjörg Nymphius
Advisor to the Board
Euro Banking Association
Introductory presentation to Open Forum on Pan-European Instant Payments
30th March 2015
Topics
1. Real time as global trend
2. Towards instant payment services
– Touching which layers
– Replacing what
– Impacting all
3. Pan-European Forum on instant payments
– Discussion: towards a pan-European approach
21
Introductory presentation to Open Forum on Pan-European Instant Payments
30th March 2015 22
RT activities around the globe
Source: SWIFT
Introductory presentation to Open Forum on Pan-European Instant Payments
30th March 2015
23
RT as a global trend
Country Catalyst Initiative Status
Mexico Banco de
México
SPEI, instant payments in
the RTGS system
Live
Singapore Association of
Banks in
Singapore
FAST (formerly G3) Live since March
2014
Australia Reserve Bank of
Australia
NPP - New Payments
Platform
IP solutions to go
live by end 2016
USA FED Improvement of payments
System; Faster Payments
Task Force
Ongoing
The Clearing
House
Real-time (immediate)
payment system, project
has started in Jan 2015
Ongoing, live
implementation
planned for 2018
Canada Canadian
Payments
Association
Next generation clearing
and settlement system
Ongoing
Introductory presentation to Open Forum on Pan-European Instant Payments
30th March 2015
24
RT initiatives in Europe
Country Catalyst Initiative Status
UK Regulatory Faster Payments Services
FPS
Live since May 2008
Poland National Clearing
House (KIR SA)
Express ELIXIR Live since June
2012
Sweden Swedish banks Payments in real-time BIR Live since Nov 2012
Denmark NCB with Ministry
of Commerce
Express credit transfers Live since Nov 2014
Nether-
lands
DNB, National
Forum on the
Payment System
Feasibility study on instant
payments 2013, analysis,
working group
Ongoing
Finland FFI banking
community
RFI for urgent payments
system
Ongoing
Various other communities Considerations, feasibility studies, working groups
Introductory presentation to Open Forum on Pan-European Instant Payments
30th March 2015
Candidates for adoption (PSP’s perspective)
25
Source: SWIFT
Not to forget: cash payments!
Introductory presentation to Open Forum on Pan-European Instant Payments
30th March 2015
Settlement
Clearing
PSP A
PSP B
Instant Payments – layer approach
Introductory presentation to Open Forum on Pan-European Instant Payments
30th March 2015
Settlement
Clearing
Payer-Payee
PSP A
PSP B
PSU
A PSU
B
Instant Payments – layer approach
Introductory presentation to Open Forum on Pan-European Instant Payments
30th March 2015
Settlement
Clearing
Payer-Payee
Scheme based
Instant Payment
related messaging,
processing
PSP A
PSP B
PSU
A PSU
B
Instant Payments – layer approach
Introductory presentation to Open Forum on Pan-European Instant Payments
30th March 2015
Service
infrastructure
PSP A
PSP B
PSU
A PSU
B
Settlement
Clearing pan-E
Payer-Payee
Collaborative space to be defined:
• scheme
• processes
• infrastructure
• ...
Service
InstP
Instant Payments – layer approach
Introductory presentation to Open Forum on Pan-European Instant Payments
30th March 2015
The layers from the EBA e-AP WG’s perspective
30
SCT, SDD
Cards, Cheques
ACH
Visanet, Banknet
Real Time Gross Settlement
Services
E-AP E-AP
DCSI
Instruments
Processing
Settlement
INTE
RN
ET
INFR
AST
RU
CTU
RE
Digital Customer Services Interface
Introductory presentation to Open Forum on Pan-European Instant Payments
30th March 2015
Who and what is impacted? (not comprehensive)
31
• Order system
• Cash register
• Invoice mgmt
• Treasury
• Reconciliation
• Interface
• AML/KYC
• Booking
• Treasury
• Messaging
• Settlement
• Interface
• AML/KYC
• Booking
• Treasury
• Messaging
• Settlement
• Clearing „cycle“
• Messaging
• Settlement
• Interface
• Security
• Fraud protection
Multiple solutions resulting in
various communication flows
Introductory presentation to Open Forum on Pan-European Instant Payments
30th March 2015
Tours de table – discussion points
32
• What are the key use cases regarding instant payments
– from a consumer perspective?
– from a corporate/merchant perspective, both in the B2C and B2B
space?
• What makes a payment instant for consumers and corporates/
merchants?
• What do PSPs and suppliers have to put in place to make a payment
instant for both retail customers and merchant/corporate customers?
Introductory presentation to Open Forum on Pan-European Instant Payments
30th March 2015
The next meeting of the Open Forum on Pan-European Instant
Payments will take place in Amsterdam on 12th May 2015, from 8:00
to 10:00 CET.
NB: The meeting will take place on the premises of EBAday 2015 before the start of the
conference programme. You do not have to register for EBAday in order to attend the
Open Forum meeting.
Next meeting
33
Closing remarks
Wolfgang Ehrmann, Chairman, Euro Banking
Association
www.abe-eba.eu
Euro Banking Association
40 rue de Courcelles, F-75008 Paris
Tel. +33 1 53 67 07 00