Comments on: Trends in International Payments – A US Perspective http://www.paymentstalk.com/2009/11/23/trends-in-international-payments-%e2%80%93-a-us-perspective/ Payments Industry Discussion and Commentary, from hyperWALLET Mon, 28 Jun 2010 15:57:03 +0000 http://wordpress.org/?v=abc hourly 1 By: Gina Knight http://www.paymentstalk.com/2009/11/23/trends-in-international-payments-%e2%80%93-a-us-perspective/comment-page-1/#comment-11 Gina Knight Tue, 24 Nov 2009 20:35:49 +0000 http://www.paymentstalk.com/?p=111#comment-11 Hi Subhash, Thanks for your comment. This different way of classifying/distinguishing payment systems was what I was hearing from presenters and attendees of this event. So I guess it's less of prediction than an expression of how people seem to be looking at some of these systems now. There's talk that the FPS's 10k GBP per item limit will also be raised, and I believe the limit for standing orders is already significantly higher (100k GBP). Perhaps this development has more to do with the technology available now. What I was hearing was why settle for slower settlement times just because a payment is low value, when it is possible to utilize (in certain cases existing networks) or in other cases build new ones that permit faster and irrevocable payments? For instance a consultant from the Office of Technical Assistance from the US Department of Treasury was relating some of his experiences on a current assignment to assist the authorities in Uruguay (I may have this confused with Paraguay - so forgive me if this is the case) implement a RTGS for both low and high value domestic payments. Since they are starting from scratch almost, they will build the best and leapfrog older technology that some of the developed countries are using. What you write about SIPS in India is interesting! It sounds as though the value of a payment grants the privilege of having it settle faster. It would be great to to hear more about this fascinating market from you. Hi Subhash,

Thanks for your comment. This different way of classifying/distinguishing payment systems was what I was hearing from presenters and attendees of this event. So I guess it’s less of prediction than an expression of how people seem to be looking at some of these systems now. There’s talk that the FPS’s 10k GBP per item limit will also be raised, and I believe the limit for standing orders is already significantly higher (100k GBP). Perhaps this development has more to do with the technology available now.

What I was hearing was why settle for slower settlement times just because a payment is low value, when it is possible to utilize (in certain cases existing networks) or in other cases build new ones that permit faster and irrevocable payments? For instance a consultant from the Office of Technical Assistance from the US Department of Treasury was relating some of his experiences on a current assignment to assist the authorities in Uruguay (I may have this confused with Paraguay – so forgive me if this is the case) implement a RTGS for both low and high value domestic payments. Since they are starting from scratch almost, they will build the best and leapfrog older technology that some of the developed countries are using.

What you write about SIPS in India is interesting! It sounds as though the value of a payment grants the privilege of having it settle faster. It would be great to to hear more about this fascinating market from you.

]]> By: Subhash Kasse http://www.paymentstalk.com/2009/11/23/trends-in-international-payments-%e2%80%93-a-us-perspective/comment-page-1/#comment-10 Subhash Kasse Tue, 24 Nov 2009 18:48:41 +0000 http://www.paymentstalk.com/?p=111#comment-10 Hi Gina, Thank you for the very interesting post. Your prediction on the classification of payment systems to be based on urgency rather than value of payment is worth exploring further. Is that development going against the traditionally held belief that SIPS should be treated with sanctity and the typical exclusion principle for participating in these systems happen to be the value of the payment? At least in India, the eligibility criterion for routing a retail payment on the RTGS system (the SIPS) is a minimum lower amount limit. Not just that, this limit is expected to go up in the near future! It'll be interesting to notice how the central banks around the world would look at the success of UK's Faster Payments. Hi Gina,

Thank you for the very interesting post. Your prediction on the classification of payment systems to be based on urgency rather than value of payment is worth exploring further.

Is that development going against the traditionally held belief that SIPS should be treated with sanctity and the typical exclusion principle for participating in these systems happen to be the value of the payment? At least in India, the eligibility criterion for routing a retail payment on the RTGS system (the SIPS) is a minimum lower amount limit. Not just that, this limit is expected to go up in the near future! It’ll be interesting to notice how the central banks around the world would look at the success of UK’s Faster Payments.

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