Prepaid Summit: Europe 2016

Transcription

1 Prepaid Summit: Europe th October 2016 Milan, Italy Nicolo Romani, Head of Innovation Lab Southern Europe Case Study - an outside Perspective SIA GROUP

2 Key Figures 2015 CORPORATE INFORMATION NETWORK Revenues (SIA Group): million Euros Employees (SIA Group): 1, terabyte of data carried 100% availability CARDS 3.9 billion operations 747,325 merchants managed 65.1 million credit, debit and prepaid cards PAYMENTS 2.8 billion transactions 1,154 customers INSTITUTIONAL SERVICES 41.7 billion financial transactions over 100 brokers and traders in 18 countries adopting compliance & surveillance systems 9.9 billion clearing transactions Over 4,800 EBA STEP2 participants 350 million deal proposals handled daily (50,000 per second) 29 trading venues and over 580 customers connected to the Financial Ring SIA GROUP 2

3 REGULATORS PSD2 TECHNOLOGY Payment Industry is changing very fast Disrupting Forces Branches Internet Banking (Digital Bank) CONSUMERS Millennials VAS Services (Cloud, wallet ) Core Services (Advertising, ecommerce) VAS Services Reporting, Fidelity, e-wallet Payment Network, Issuing Mobile VAS Services Cloud, NFC, M2M Open Innovation Network Services Connectivity ASYMMETRIC COMPETITION Effective Customer experience; Large Customer Base; High innovation and investing capabilities; Banks need to offer secure, easy and user friendly solutions on global scale to maintain their position. SIA GROUP 3

4 Payment Industry is changing very fast Why Jiffy Market Trends 1. Missing revenues due to interchange fee reduction 2. Increase of the competition on acquiring side due to the entrance of new full digital players (GiC) War On GIC Italian Payment Market (*) Payment instrument Transactions (Mln) Cash % Cards % Bank Transfer % Total % % War On Cash (*) source: SIA aggregation of Bank of Italy data SIA GROUP 4

5 Jiffy Solution P2X European Solution Immediate debiting and crediting Beneficiary identified by a phone number Security (Enrolment and user authentication) provided by the Bank Based on current account (or card with IBAN) Settlement at cut off through SEPA Credit Transfer / SCT INST 5 5

6 European scenario for P2X Jiffy Player USERS Market share ,5 mio 90% PSD II 3 mio All main Swedish Banks ,5 mio 66% Jiffy, is the only one based on SEPA SCT; ECB key guidelines: Leveraging on SEPA infrastructures Real time clearing and immediate funds availability Deferred settlement acceptable with no liquidity risks Interoperability 6

7 Euro System Settlement CSM Bank System Jiffy (SIA) Bank Presentation layer Clearing Application Jiffy Solution Jiffy P2X Multi Layer Solution End customer product Brand Pricing definition APP (presentation layer) VAS # phone number amount Real time credit Service Brand Interoperability among users & Banks P2X Engine Directory Service > phone # - IBAN > messaging to Banks > net exposure calculation Collateral based on Volumes Bank Account Access Interbank clearing infrastructure SCT Interbank settlement infrastructure SIA GROUP 7

8 Jiffy Roadmap Roadmap Hai ricevuto un avviso di pagamento da Brambilla Eugenio elettr. Brambilla Giovanni idraul. En te I U V Causale Import o Commiss. DataScad. Comune di Roma Mensa scolastica 101,56 1,23 31/12/2015 Paga Esci November 1st, 2014 November 1st, 2015 February 19th, nd Quarter st Q 2017 Jiffy P2P Launch with the first participating Bank Launch of the first Charity Initiative to donate with Jiffy Jiffy P2B Launch with the first participating Bank Jiffy P2G Launch with the first participating Public Administration JIFFY P2P realtime money transfer among Individuals JIFFY P2B payments to Physical and Online stores, professionals, and independent workers JIFFY P2G payments to Public Administration 8

9 Jiffy P2B Use Cases: Push and Pull mode PULL 1 Customer Identification Phone number Loyalty card Proxy Customer Proxy push notification Payment verification Payment acceptance 3 2 Transaction amount (Money Request) Merchant Selection Phone number QR Code Geolocalization Merchant name PUSH 1 Transaction Amount (*) 2 Payment verification Payment acceptance 9

10 Jiffy P2B Focus on the Directory service: the Proxy DB P2X Proxy DB Category Proxy Phone number Car plate Loyalty card Telegram ID Facebook ID Subscription code Mobile phone number IBAN XXX YYY The link Proxy Payment Instrument in the P2X Directory Service is the key element to support new payment scenarios 10

11 Not Real Time Euro System Settlement Bank System EBA Real Time SIA Data center Jiffy (SIA) Bank Presentation layer Clearing Service Application Jiffy & Instant Payament Integration with SCT INST EBA Clearing Platform Performance Optimization, both Jiffy and EBA are in the same SIA data center No liquidity risk Pre-funding Real time credit on beneficiary account -No more SCT preparation SIA GROUP 11