1. Immediate payment schemes
Best practices,
economic and technological aspects
March, 2016

2. Reference geography & Sales Coverage
Country coverage: 20+ countries
REFERENCES
Additional sales coverage
Hungary
Georgia
Russia
Montenegro
Croatia
Malta
Algeria
Ethiopia
Bulgaria
United Kingdom
Ukraine
Poland
Romania
Austria
Azerbaijan
Belarus
Moldova
Serbia
Slovenia
Slovakia
Czech Republic
Kazakhstan 2 3

3. UK Faster Payments: Majority of banks + Central Infrastructure
ACI global presence in the world of instant payments UK
UK Faster Payments: Majority of banks + Central Infrastructure
USA
Other regions
In discussions
Singapore FAST (G3)
Packaged Gateway solution for banks
Australia NPP
Building packaged solution for banks (Westpac)
Italy
Central infrastructure for real-time payment initiative
Netherlands
Discussions with large processor and banks
Europe
Az ACI rendszerei rengetek piaci szereplőnél vannak jelen és a szabályozó oldalon is aktív szerepet vállal a leghatékonyabb, nemzeti és globális kártyás és azonnali fizetési technológiák kialakításában. Az ACI technológiáit a Capsys évek óta implementálja, támogatja Magyarországon és Közép-Kelet Európa egyéb országaiban.
20022 RTPG
Canada, Spain, Saudi Arabia, Portugal, France, Belgium: In discussions 6

4. Real-time payment systems are present around the globe
47 countries around the world are currently running, deploying or exploring
an Immediate Payments scheme
RUNNING
Japan
Switzerland
Taiwan
Iceland
South Korea
Brazil
Mexico
South Africa UK
Chile
India
China
Nigeria
Poland
Sweden
Turkey
Singapore
Denmark
PLANNING / BUILDING
Australia
USA
Canada
Colombia
Finland
Indonesia
Thailand
Netherlands
Hong-Kong
New-Zealand
Turkey
Hungary
Belarus
EXPLORING
Eurozone
Source: SWIFT,

5. Automated Clearing House Real-Time Gross Settlement
Payment systems comparison
Immediate payment does matter
ACH
Automated Clearing House
for batched low-value
high-volume payments
RTGS
Real-Time Gross Settlement
for high-value
low-volume payments
IMMEDIATE
PAYMENTS
take the best elements
from both
SPEED
OF FUND MOVEMENT*
Typically 1-3 days
Real-time
Real-time for consumers
INFORMATION
AND
CERTAINTY
Limited information
for either party
Rapid confirmation
Immediate notification,
risk of returned payments eliminated
COST EFFECTIVENESS
Low cost or free
for the customer
Expensive for
both customer and bank
Customer: cheap or free
Bank: cheaper that RTGS, more expensive than ACH
*funds to be credited to the beneficiary’s account

6. public transport applications:
What is immediate payments?
The industry does not have one a single definition
”The fundamental requirement is the ability to move money from one account to another
immediately, with certainty, convenience and at low cost to all stakeholders.” (Accenture)
Purely electronic payment infrastructure with
24x7x365 service availability into which
24x7x365
Benchmark based on
public transport applications:
400ms
accepted maximum to allow
a gate flow of 35 people per minute
funds are transferred irrevocably
from one bank account to another and where
FINAL
the originator and receiver of payments have immediate confirmation of the status of the transaction in one minute or less and
CERTAIN
the payee has instant availability of the funds
where these parameters are
INSTANT
neutral to underlying payment instrument and
neutral to underlying arrangements for clearing and settlement
NEUTRAL
”Speed seems to get all the attention in the emerging interbank payment systems,
yet creating end customer value should matter most.” (Warren Gardiner, FIS)
Parameters defined by
ERPB, Accenture, ACI

7. Clearing – settlement – confirmation times
Posting of funds to the beneficiary’s account so he/she can use the funds
Occurs between banks giving the receiving institution irrevocable access to the funds
TRANSACTION
ACH
SYSTEMS
authorization 1.
settlement 2.
clearing
confirmation of payer
confirmation of payee
TRANSACTION
REAL-TIME SYSTEMS 1.
clearing
+confirmation of both parties 2.
settlement OR
settlement
Individual settlement
on gross basis
Deferred net settlement in
settlement cycles during the day

8. Immediate Payments Scheme
CUSTOMER
(PAYER)
SENDING
BANK
IP SERVICE PROVIDER
RECEIVING
BANK
CUSTOMER
(PAYEE) 1. 2. 3. 4. T + F E W S C O N D
Initiates
payment instruction
Authorization
Validates
payment
Authorises
payment 7. 6. 5.
Confirms
payment
Receives notification of successful payment
Confirms receipt
and credits
payee’s account
Receives
notification
Receives
notification
Transaction cannot be cancelled
Settlement based on settlement times

9. PAYMENTS AND TRANSFERS
Payment systems I N O V A T
ORS
INFRASTRUCTURE
IG2
ACH
BIR
RTGS
GIRO
VIBER
PAYMENTS AND TRANSFERS
IMMEDIATE
PAYMENTS
CARD
PAYMENTS

10. Any-to-any type payments with multiple use cases
Immediate settlement of on-the-spot/online purchase
Joint bill payment
Emergency fund transfer for immediate use
Pocket money P 2 P
Point-of-sale purchase
On-the-spot payment for services
POS payment with mobile device
Immediate advance payment
Online purchase with real-time delivery
Urgent/last minute purchase/payment
Urgent compensation payout
Day-workers’ wage payment
Reimbursement of a returned good
Payment error correction P 2 B B 2 P 2 B B
Just-in-time invoice payments
Same-day/short-term transfers
Immediate advance payment
Immediate shipment following payment receipt
On-the-spot payment / pay-on-delivery
Invoice/bill, tax, penalty payment

11. Take-up rates vary depending on regulatory mandate and pricing
Adoption
(% of credit transfer / direct debit volume vs total)
RAPID ADOPTION PATH
driven by
Central Bank / Regulatory mandate and
Low pricing
TYPICAL ADOPTION PATH
SLOW ADOPTION PATH
Poland, South Africa, India, Brazil: low participation of banks
India: overly complex user experience
Time in existence (years)
Source: SWIFT