Shaping the future of payments

Transcription

1 Helmut Wacket Head of Market Integration Division Shaping the future of payments QED Brussels, 29 March 2017

2 Changes in the retail payments landscape Classical payment instruments innovative payment solutions (cheque, credit transfer, direct debit, payment card, electronic purse) Everything is becoming faster T+3 T+1 T+0 real-time Trend towards becoming mobile Traditional banks new (payment) banks, FinTechs, BigTechs Shaping the future of payments 2

3 Euro Retail Payments Board - contributing to retail payments governance SEPA Legal Framework Strategy and facilitation Catalyst, Operator European Commissio n Euro Retail Payments Board Eurosystem Consumers, merchants, corporations, public administrations, payment institutions, banks Shaping the future of payments 3

4 Instant payments Shaping the future of payments 4

5 Instant SEPA Credit Transfer scheme Following agreement within the ERPB, the European Payments Council (EPC) has drafted a scheme rulebook for instant credit transfers with SEPA-wide reachability The rulebook has been published on 30 November 2016, is open for registration since 19 January 2017 and should be effective in November 2017 Source Instant payments 5

6 The layers of instant payments ECB-UNRESTRICTED scheme layer end-user solutions schemes Cooperatively or competitively developed on the market Expected to enable pan-european reach through interoperability e.g. person-to-person mobile payment solutions, online payment solutions, person-to-business and business-tobusiness payment solutions Instant SEPA Credit Transfer (SCT inst ) scheme as basis for pan-european euro instant payment solutions based on credit transfer clearing layer Intrabank or Bilateral interbank or ACH or Point-to-point network settlement layer Deferred net settlement (with cash or securities collateral) vs Real-time gross settlement (in the RTGS or in a dedicated module of the RTGS) Instant payments 6

7 Clearing and settlement arrangements for instant payments ECB dialogue with the stakeholders involved from the clearing industry to facilitate instant clearing arrangements Eurosystem and ACHs agreed on: i. a single procedure for settlement ii. iii. a single model for risk management a way forward for a common access policy With the objective to achieve interoperability and pan-european reach Eurosystem to enhance its current TARGET2 settlement module (ASI6 real-time) to cater for the needs of the clearing industry Clearing industry provided in November 2016 a technical interoperability framework for pan-european instant payments in euro. Questions remain to what extent sufficient links between ACHs will be established to provide for pan-european reach 7

8 Eurosystem investigation for instant settlement services Why TARGET Instant Payments Settlement (TIPS)? The Eurosystem decided in September 2016 to launch an investigation phase for TIPS TIPS extends the availability of central bank money (CeBM) settlement to 24/7/365, to facilitate the emergence of instant payments and pan-european reach The investigation phase will, among others: Elaborate the user requirements for TIPS Define the business case Objectives of the Eurosystem: Euro area not to lag behind in speed of payments Promote efficiency and ensure market integration in the settlement of instant payments Introduction to TARGET Instant Payments Settlement 8

9 Payment initiation services Shaping the future of payments 9

10 Payment initiation services (PIS) what is it? An innovative payment solution for e-commerce payments, based on initiating a credit transfer from your existing payment account Bank 2. Informs the TPP on initiation and execution Bank 1. Makes use of a TPP to initiate a payment order Third- Party Provider 3. Informs the merchant; TPP not involved in funds transfer Consumer Payment initiation services E-commerce transaction 4. Releases the goods/services Merchant 10

11 The revised Payment Services Directive (PSD2) Determines that payment initiation services are payment services Sets rules on access to payment account by third-party providers Payment initiation service providers: - require authorisation - will be supervised - shall not hold payer s funds - shall not use, access or store any data for other purposes than PIS Account-servicing PSPs ( banks ): - shall treat payment orders without any discrimination - may deny access to a PIS-provider for reasons relating to unauthorised or fraudulent access by that provider To be transposed in national legislation by 13 January 2018 To be complemented by RTS on authentication and communication (draft submitted by EBA in February 2017; transitional period to be clarified) Payment initiation services 11

12 DRAFT ERPB involvement in Payment initiation services ü Concern about non-harmonised provision of payment initiation services (PIS), especially cross-border ü ERPB decided in Nov 2016 to create a Working Group tasked to define a common set of technical, operational and business requirements for the development of an integrated market for PIS ü Delivery of report expected for ERPB meeting in Jun 2017 ü ECB/Eurosystem concern: renewed fragmentation ü Need of a standardised interface as well as harmonised operational and business rules Payment initiation services 12

13 Concluding remarks The retail payments landscape is changing by itself Influencing, steering or even making the changes requires an inclusive stakeholder approach at European level For instant payments: ERPB facilitated strategic discussions on the emergence of pan-european instant payments => SCT Inst scheme to be commercially launched in November 2017 Ongoing work at the clearing and settlement layer For payment initiation services: PSD2 sets the (general) rules, but not precise enough for the implementation of a payment service ERPB facilitates stakeholders to define a common set of technical, operational and other requirements (on top of legal requirements) to achieve the efficient and pan-european provision of PIS Shaping the future of payments 13