Payment system - a set of rules, procedures and technical infrastructure that ensure the transfer of value from one subject of the economy to another. Payment systems are one of the key parts of modern monetary systems .
Payment systems are a substitute for cash settlements for domestic and international payments and are one of the basic services provided by banks and other relevant financial institutions.
It usually means that money is transferred through payment systems. From a legal point of view, in most cases there is a transfer of debt: the funds that the payment system owes to one of the clients, it becomes due to another client. When the first client transfers his money to the payment system, the amount of such a transfer, that is, the amount of debt to the first client, is recorded. By his order the client can indicate that the payment system now owes not to him, but to the second client. When a second client applies to the payment system, he has the opportunity to receive a cash equivalent of such a debt. In some cases, the means of payment are not money or debts denominated in money, but conditional payment units or specialized securities (for example, WMR , Bitcoin ).
Extended forms of payment systems (including physical or electronic infrastructure and related procedures and protocols) include financial transactions using ATMs , payment kiosks , POS terminals , cards with stored cash value ; electronic wallets; conducting transactions in the foreign exchange markets, futures , derivatives and options markets. Some payment systems include credit facilities, but they should be considered outside the aspect of payment systems.
Electronic payment systems are subspecies of payment systems that provide electronic payment transactions through networks (for example, the Internet ) or payment chips.
Content
Real-Time System
The development of modern technologies has led to the creation of national payment systems with the participation of central banks, which has become a serious factor in the anti-crisis work in the financial market [1] .
If in 1985 only 3 central banks introduced the Real-Time Gross Settlement (RTGS ) Gross Settlement System, then in the beginning of the 21st century their number exceeded 90. According to the forecast, only 1 percent of central banks will not introduce RTGS by 2020. The introduction of this system has become one of the criteria for the innovative characteristics of the central bank, since with their help such public goals as financial stability and anti-crisis readiness are achieved. With such innovative assessments, such an important element as the size of investments in information and technological capabilities of the system (Information and Communication Technologies - ICT), which should have a business case, matters.
| We expect countries where ICT is cheaper and more cost efficient to invest in, RTGS deployment is faster ... More efficiently managed central banks are more likely to be able to implement new technologies and get more benefits when the system is already installed.experts from the Federal Reserve Bank of New York in their report “Technology Diffusion within Central Banking: The Case of Real-Time Gross Settlement” |
At the same time, the ratio of the number of central bank employees to the total population of the country is, in their opinion, one of the criteria for the speed of RTGS implementation. In this case, they probably link the size of the apparatus with the bureaucratization of the work of the central bank and its own inadequate security with internal technological systems, which allow reducing the number of employees. The European Central Bank made RTGS a prerequisite, so not only the countries of the European Union, but also the rest of the European countries that have applied to it, have introduced this system.
Central banks are introducing RTGS in order to improve the efficiency of national financial markets, primarily through reducing the risk of non-payment. Researchers identify four main reasons for the introduction of central banks RTGS [2] :
- it is necessary for the competitiveness of national markets in the context of global competition to attract investment;
- the introduction of RTGS allows you to combine payments with the payment systems of other countries, if necessary;
- this helps in establishing RTGS of the same type in countries with long-standing historical trade ties (such as the CIS countries) and helps them in establishing and updating their own payment systems;
- you can not spend your own efforts and use the services of internationally available companies specializing in installing national RTGS.
The organization of the payment system should not lag behind its current level of technological development and should be updated in order to maintain its effectiveness in reducing or eliminating the financial risks of the national economy. Claims on an international financial center, not supported by a payment system that is advanced and competitive compared to other countries, have no realistic basis. The technological efficiency of the payment system determines the efficiency with which money is used in the national economy, and reduces the risks in the calculations. [3]
As an indicator of the effectiveness of the action and anti-crisis readiness of the payment system, the number of daily payments made within the RTGS must be at least 20% of the total number of payments and at least 95% of the number of large payments. The national payment system should be unified and not demarcated at the national and regional levels.
| Effective safe and practical (economical) payment system reduces the cost of goods and services. Moreover, it is an essential tool for the effective implementation of state monetary policy, as well as general money turnover and the securities market. It is also a channel for the settlement of all types of transactions, including international cash flows. Conversely, an inefficient, unsafe and uneconomic payment system can negatively affect the financial system and cause systemic crises ... In addition, an effective payment system necessarily supports economic development and growth ... One of the indicators of a proper reform strategy is the fact that the payment system covers the whole country and meets the needs of all sectors of the market.[four] |
Implementations
Payment and clearing systems
- SWIFT (International)
- BACS (UK)
- SPFS (Russia)
- BIC (International Standard)
- IBAN (International Standard)
- TARGET (European Union)
- ACH Network (USA)
- Fedwire (USA)
- CHIPS (USA)
- APACS
- CHAPS (UK)
- EPN (USA)
- FedACH (USA)
- TIPANET (European Union)
- PlusGirot (Sweden)
- PE-ACH (European Union)
- LankaPay (formerly SLIPS) (Sri Lanka)
- HiPay (France)
- FPS (Hong Kong)
- Bankgirocentralen (Norway)
- Bankgirot (Sweden)
- BankservAfrica (South Africa)
- UnionPay (China)
- World (Russia)
Alternative systems
- CIPS (China)
- Paypal
- Venmo
See also
- Electronic money
- Cryptocurrencies
- National Payment Card System
- Register of payment system operators
- Internet payment systems
- Clearing
- Direct debit
- Interbank networks ( ATM / EFT / POS )
- Hawala
- ISO 13616
Notes
- ↑ V. Mazaev, A. Nazarov, “The Evolution of the Implementation of Payment and Depositary Systems: Foreign Experience” in S. A. Golubev (ed.) Constitutional Economics and Anti-Crisis Activities of Central Banks: Collected Articles. - Moscow:, 2013. with - ISBN 978-5-9903067-8-3 , p. 146
- ↑ Morten L. Bech, Bart Hobijn, Federal Reserve Bank of New York. Staff Report No 260. “Technology Diffusion within Central Banking: The Case of Real-Time Gross Settlement”, September 2006
- ↑ Biagio Bossone and Massimo Cirasino, “The Oversight of the Emerging Economies”, World Bank, July 2001.
- Im Massimo Cirasino, Global Trends in Payment and Settlement Systems, World Bank Global Payment Systems Survey, World Bank, 2010
Links
- Bank for International Settlements Data on payment systems of central banks .
- Payment systems - the publication of the Central Bank , dedicated to international experience.