Wednesday, 13 June 2018

FSS Instant Payments

Future of Instant Payments: An exclusive 1:1 with Mr. Suresh Rajagopalan, President-Software Business, FSS
FSS Instant Payments
Real-Time Payment Rails for Money Transfers
Instant is the new norm of today’s connected, digital economies. Customers expect no different from their payment services. In addition to meeting consumers’ rising expectations, the banking industry is facing mounting pressure from governments to create a ubiquitous payments system that can be used by all financial institutions. Across the world, this is catalyzing the growth of immediate payments. Many countries are investing in faster payment rails to reap efficiency benefits from immediate transfers and to exploit new opportunities arising from an on-demand, always-on 24/7 digital economy.
Building New Payment Rails
Real-time payments will have a transformative impact on payments. FSS, with 25+ years’ experience in developing and running mission-critical payment processing and switching solutions, is working with regulators and banks in many countries to modernize payment rails.
Designed to cater to universal payment needs, FSS Instant Payments system orchestrates connections between payment service providers including banks, mobile network operators, fintech challengers and electronic money institutions to create a central payment clearing and settlement infrastructure for instant domestic and international transfers. The ability to initiate any-to-any transfers in real-time 24/7, 365 days a year improves payment efficiencies and generates network effects, triggering a virtuous cycle of innovation and growth.
FSS works with central regulators and ecosystem participants for end-to-end system design and development of scheme rules, improving the speed of deployment and ensuring the overall efficiency of the infrastructure.
How FSS Instant Payments Work?
FSS Instant Payment offers a real-time 24/7, interbank electronic fund transfer service. The service supports pull and push transactions.  Customers of participant institutions can initiate a credit request that can be initiated through one of many channels -- smart phones, tablets, digital wallets, and the web. On successful authentication, the sender institution debits the payer’s account and transmits the request to the FSS Instant Payments system for routing to the beneficiary institution.  In contrast, for pull payments, the payee’s financial institution pulls the money from the payer’s account.
At the scheduled frequency, FSS Instant Payments system clears transactions and provides reports on settlement positions to participant banks for establishing settlement finality.
The distinctive feature of FSS Instant Payments is its “multi-layered” design. Basic infrastructure, instant settlement and overlay services function in concert to drive adoption of real-time payments. The basic infrastructure provides connectivity to inter-bank services. Fast settlement services facilitate immediate settlement of obligations between participants. Overlay services offer additional value-added services to promote competition and innovation.
Key Features
Real-time payments processing incorporates:
Instant transfers:  The infrastructure is continuously available, 24 hours a day, any day of the year, including weekends and public holidays
Multiple payment instrument support – Allows any-to-any value transfers using a range of diverse instruments –  bank accounts, mobile numbers, cards and mobile wallets   
Multiple transaction types -- Supports push and pull transactions enabling a wide range of use cases
Multi-currency support – Supports currency conversion for cross-border transfers
Flexible and easy-to-configure workflows -- Define rules and procedures for bank registration, transmission of payments, fees, clearing and settlement for participant PSPs.
Clearing and settlement-- Flexibility to define frequency of settlement cycles, which can be near real-time or periodic throughout the day. FSS Instant Payments supports multiple settlement windows and includes the ability to force settlement when a participating bank’s daily exposure limit is reached
Risk management -- Broad set of controls to mitigate operational, transaction and settlement risk to safeguard integrity of the payment infrastructure
Exceptions handling and dispute management -- Dispute Management portal to raise as well as view and track status of disputed transactions
Real-time accounting, status, information, dashboards – Comprehensive reports available online to view real-time and historical transaction trends and settlement positions.
Security: Multi-layered security measures including public private key infrastructure, and dynamic MAC key exchange to protect transactions
FSS Instant Payments for PSPs
FSS has extensive experience with helping payment service providers (PSPs) to implement and affect a rapid transition to real-time payments. The company has deployed its Financial Messaging Gateway to connect financial institutions to the real-time payments scheme in several countries including India. Our proven, standardized implementation processes eliminate complexity and costs associated with the Instant Payments on-boarding process.
FSS offers an end-to-end Gateway service to connect financial institutions directly to the Instant Payments service, providing the required technology to become a direct scheme participant. In addition, PSPs can enhance existing payment services or expose APIs to monetize infrastructure and deploy innovative overlay services that deliver real customer value. Based on regional market trends, the use cases span a wide range of tailored offerings.
Multiple Use Cases
FSS Instant Payments underpins a financial institution's customer-facing systems for a range of innovative propositions:
Person to Person
Bill sharing with friends
Emergency fund transfer and remittances
Person to Business
E-/M-commerce and in-store POS payments
Emergency bill payments or rent payments
Business to Business
Just-in-time supplier payments (early payment discounts)
Immediate bill payments with e-invoicing
Business to Person
Salary/wage payments for temporary workers or contract employees
Instant insurance claim payouts
Government to Person
Emergency disaster payments
Welfare benefits
Person to Government
Tax payments
Payment of fines
Benefits
Immediacy
Instantly processes high volumes of payments 24/7, 365 days a year based on a “good funds” model. Business and consumers value the convenience and the certainty of payment and can manage cash flows more easily and with greater precision.
Scalable Platform
Designed with growth and flexibility in mind, FSS Instant Payments can scale to accommodate the exponential growth volume often experienced with the introduction of real-time payments.
Highly Available Infrastructure
FSS Instant Payments is built on a resilient framework with high availability, guaranteeing continuous processing of payments 24x7, with minimal downtime
Improves Revenues
Real-time payments generate new customers behaviors and spending patterns, improving overall volume of transactions, thereby increasing revenue for payment players who are well-positioned to capitalize on this evolution.
Preserves Existing Investments
Co-exists with existing payment infrastructure and can be integrated with existing payment services, to offer instant payment options, significantly improving cost efficiencies for banks.
Provides a Foundation for the Future
Creates a level-playing field for fintechs, banks and financial institutions to rapidly address demand for innovative services, laying a foundation for democratization and adoption of digital payments     

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