Sybrin

Part II


Payment Industry Initiatives:
Instant Payments

In our previous article on the modernisation of payments, we had a look at the current industry trends, and the factors financial institutions need to consider when choosing a suitable future-proofed solution. In this instalment, we continue with this train of thought, taking a more in-depth look at instant payments and how Sybrin’s offering is able to integrate seamlessly with various solutions.

Instant payment initiatives have proven to be beneficial across the whole value chain, these include:

Payments Hub

Benefit to Governments and Central Banks

Instant payments have been shown to reduce the usage of cash, the associated cash management costs, fraud, and tax avoidance. The reduction of cash and the resultant opening of bank accounts, supports most countries’ financial inclusion strategy.

Benefit to Banks

Following an instant payment implementation, the volume of account-to-account transactions typically increases by 16% to 25%. This increases the fees banks can collect, although in some countries this increase will be from corporates and less so from retail customers.

Benefit to Business

Businesses can manage their cashflow better, as they can delay payments to the last moment. There is no need to perform a payment one or two days before in order to clear at another bank.

Benefit to Society

Instant payments increase the customer’s ability to manage their money, as account balances are a true reflection of what is available for spending. Additionally, instant payments typically operate 24/7 and are convenient as well as irrevocable.

Sybrin Payments Hub

Our Payments Hub offering can integrate into legacy systems and payment service providers as well as the below solutions, allowing our customers the ability to extend their existing payment processes to instant payments, yet still retaining as much as possible of their existing ecosystem:

SWIFT GPI. Global Payment Initiative (GPI), is the latest initiative launched by SWIFT to improve the customer-bank experience in the world of international payments, with a focus on making cross-border payments fast and smooth.

X-Infotech Instant Payments. This Sybrin partner solution is an instant payment switch.

TIPS is the Tanzania Instant Payment System (using Mojaloop software as an instant payments engine).

Mojaloop. Mojaloop was designed to provide a reference model for payment interoperability, that can be used to overcome barriers that have slowed the spread of digital financial services. Whole, adapted, or as a blueprint – the Mojaloop Foundation’s open-source software can be used by organisations to build interoperable, digital payment systems that enable seamless, affordable financial services between individual users, banks, government entities, merchants, mobile network operators, providers, and technology companies – connecting the underserved with the emerging digital economy. Sybrin is a proud Promoter Member of the Mojaloop Foundation.

Open Banking Request to Pay API. R2P schemes involve a request for payment sent by the payee which can be approved by the payor, creating a streamlined and faster billing system for both parties. R2Ps are real-time, suitable for single or ad hoc payments, do not require an upfront mandate from the payer, making it an ideal interface for instant payments.

In review, the benefits of instant payments have been proven across the value chain, there are also other options available; read our next article on alternative payments for more info on this subject or contact us to find out how Sybrin’s Payments Hub can integrate into your current systems.

For further reading on our Payments Hub, visit apex.sybrin.com/payments-hub

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