open forum on pan-european instant payments€¦ · introductory presentation to open forum on...

35
Open Forum on Pan-European Instant Payments Kick-off meeting Helaba, Frankfurt 30 th March 2015

Upload: others

Post on 18-Jun-2020

5 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Open Forum on Pan-European Instant Payments€¦ · Introductory presentation to Open Forum on Pan-European Instant Payments 30th March 2015 ECB / ERPB definition, vision and way

Open Forum on

Pan-European Instant Payments

Kick-off meeting

Helaba, Frankfurt

30th March 2015

Page 2: Open Forum on Pan-European Instant Payments€¦ · Introductory presentation to Open Forum on Pan-European Instant Payments 30th March 2015 ECB / ERPB definition, vision and way

Welcome and introduction

Wolfgang Ehrmann

Chairman

Euro Banking Association

Page 3: Open Forum on Pan-European Instant Payments€¦ · Introductory presentation to Open Forum on Pan-European Instant Payments 30th March 2015 ECB / ERPB definition, vision and way

ECB / ERPB definition, vision and way

forward

Gilbert Lichter

Secretary General

Euro Banking Association

Page 4: Open Forum on Pan-European Instant Payments€¦ · Introductory presentation to Open Forum on Pan-European Instant Payments 30th March 2015 ECB / ERPB definition, vision and way

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

Page 5: Open Forum on Pan-European Instant Payments€¦ · Introductory presentation to Open Forum on Pan-European Instant Payments 30th March 2015 ECB / ERPB definition, vision and way

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.

Page 6: Open Forum on Pan-European Instant Payments€¦ · Introductory presentation to Open Forum on Pan-European Instant Payments 30th March 2015 ECB / ERPB definition, vision and way

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

Page 7: Open Forum on Pan-European Instant Payments€¦ · Introductory presentation to Open Forum on Pan-European Instant Payments 30th March 2015 ECB / ERPB definition, vision and way

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

Page 8: Open Forum on Pan-European Instant Payments€¦ · Introductory presentation to Open Forum on Pan-European Instant Payments 30th March 2015 ECB / ERPB definition, vision and way

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

Page 9: Open Forum on Pan-European Instant Payments€¦ · Introductory presentation to Open Forum on Pan-European Instant Payments 30th March 2015 ECB / ERPB definition, vision and way

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

Page 10: Open Forum on Pan-European Instant Payments€¦ · Introductory presentation to Open Forum on Pan-European Instant Payments 30th March 2015 ECB / ERPB definition, vision and way

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

Page 11: Open Forum on Pan-European Instant Payments€¦ · Introductory presentation to Open Forum on Pan-European Instant Payments 30th March 2015 ECB / ERPB definition, vision and way

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

Page 12: Open Forum on Pan-European Instant Payments€¦ · Introductory presentation to Open Forum on Pan-European Instant Payments 30th March 2015 ECB / ERPB definition, vision and way

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

Page 13: Open Forum on Pan-European Instant Payments€¦ · Introductory presentation to Open Forum on Pan-European Instant Payments 30th March 2015 ECB / ERPB definition, vision and way

Scope of the Open Forum and

Terms of Reference

Gilbert Lichter

Secretary General

Euro Banking Association

Page 14: Open Forum on Pan-European Instant Payments€¦ · Introductory presentation to Open Forum on Pan-European Instant Payments 30th March 2015 ECB / ERPB definition, vision and way

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

Page 15: Open Forum on Pan-European Instant Payments€¦ · Introductory presentation to Open Forum on Pan-European Instant Payments 30th March 2015 ECB / ERPB definition, vision and way

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

Page 16: Open Forum on Pan-European Instant Payments€¦ · Introductory presentation to Open Forum on Pan-European Instant Payments 30th March 2015 ECB / ERPB definition, vision and way

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

Page 17: Open Forum on Pan-European Instant Payments€¦ · Introductory presentation to Open Forum on Pan-European Instant Payments 30th March 2015 ECB / ERPB definition, vision and way

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

Page 18: Open Forum on Pan-European Instant Payments€¦ · Introductory presentation to Open Forum on Pan-European Instant Payments 30th March 2015 ECB / ERPB definition, vision and way

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

Page 19: Open Forum on Pan-European Instant Payments€¦ · Introductory presentation to Open Forum on Pan-European Instant Payments 30th March 2015 ECB / ERPB definition, vision and way

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

Page 20: Open Forum on Pan-European Instant Payments€¦ · Introductory presentation to Open Forum on Pan-European Instant Payments 30th March 2015 ECB / ERPB definition, vision and way

Overview of developments in the instant

payments domain

Hansjörg Nymphius

Advisor to the Board

Euro Banking Association

Page 21: Open Forum on Pan-European Instant Payments€¦ · Introductory presentation to Open Forum on Pan-European Instant Payments 30th March 2015 ECB / ERPB definition, vision and way

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

Page 22: Open Forum on Pan-European Instant Payments€¦ · Introductory presentation to Open Forum on Pan-European Instant Payments 30th March 2015 ECB / ERPB definition, vision and way

Introductory presentation to Open Forum on Pan-European Instant Payments

30th March 2015 22

RT activities around the globe

Source: SWIFT

Page 23: Open Forum on Pan-European Instant Payments€¦ · Introductory presentation to Open Forum on Pan-European Instant Payments 30th March 2015 ECB / ERPB definition, vision and way

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

Page 24: Open Forum on Pan-European Instant Payments€¦ · Introductory presentation to Open Forum on Pan-European Instant Payments 30th March 2015 ECB / ERPB definition, vision and way

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

Page 25: Open Forum on Pan-European Instant Payments€¦ · Introductory presentation to Open Forum on Pan-European Instant Payments 30th March 2015 ECB / ERPB definition, vision and way

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!

Page 26: Open Forum on Pan-European Instant Payments€¦ · Introductory presentation to Open Forum on Pan-European Instant Payments 30th March 2015 ECB / ERPB definition, vision and way

Introductory presentation to Open Forum on Pan-European Instant Payments

30th March 2015

Settlement

Clearing

PSP A

PSP B

Instant Payments – layer approach

Page 27: Open Forum on Pan-European Instant Payments€¦ · Introductory presentation to Open Forum on Pan-European Instant Payments 30th March 2015 ECB / ERPB definition, vision and way

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

Page 28: Open Forum on Pan-European Instant Payments€¦ · Introductory presentation to Open Forum on Pan-European Instant Payments 30th March 2015 ECB / ERPB definition, vision and way

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

Page 29: Open Forum on Pan-European Instant Payments€¦ · Introductory presentation to Open Forum on Pan-European Instant Payments 30th March 2015 ECB / ERPB definition, vision and way

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

Page 30: Open Forum on Pan-European Instant Payments€¦ · Introductory presentation to Open Forum on Pan-European Instant Payments 30th March 2015 ECB / ERPB definition, vision and way

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

Page 31: Open Forum on Pan-European Instant Payments€¦ · Introductory presentation to Open Forum on Pan-European Instant Payments 30th March 2015 ECB / ERPB definition, vision and way

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

Page 32: Open Forum on Pan-European Instant Payments€¦ · Introductory presentation to Open Forum on Pan-European Instant Payments 30th March 2015 ECB / ERPB definition, vision and way

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?

Page 33: Open Forum on Pan-European Instant Payments€¦ · Introductory presentation to Open Forum on Pan-European Instant Payments 30th March 2015 ECB / ERPB definition, vision and way

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

Page 34: Open Forum on Pan-European Instant Payments€¦ · Introductory presentation to Open Forum on Pan-European Instant Payments 30th March 2015 ECB / ERPB definition, vision and way

Closing remarks

Wolfgang Ehrmann, Chairman, Euro Banking

Association

Page 35: Open Forum on Pan-European Instant Payments€¦ · Introductory presentation to Open Forum on Pan-European Instant Payments 30th March 2015 ECB / ERPB definition, vision and way

www.abe-eba.eu

Euro Banking Association

40 rue de Courcelles, F-75008 Paris

Tel. +33 1 53 67 07 00