The Faster Payments Task Force, a broad and inclusive group of stakeholders in the US payments system has just published part 2 of its final report here.
Part 1 of the report, published in January 2017, provides an overview of the task force objectives and processes, a description of the U.S. payments landscape, and the benefits of faster payments. Part Two of the Final Report provides insights from 16 submitted solution proposals, reflects on several foundational issues that are important to address, and presents the task force’s goals and recommendations for implementing faster payments in the United States.
Kalypton is pleased to have participated in the Faster Payments Task Force. From our perspective, the Task Force made good on their intention to ensure that participation was a positive process for all proposers.
The FPTF assessment of our Tereon software was broadly accurate bearing in mind that:
- The process did not allow us to share the content of our 8 step change patent applications comprising 196 claims
- And we proposed a process by which fair and equitable scheme rules would be created when the assessors preferred rules already to be established regardless of whether they had broad participation or not
Tereon – Real Time Payments with More Functionality for Less Money
Tereon is simply the most functionally rich and best value RTP technology available. With the right governance model, it will deliver in full the Task Force objectives and criteria to all stakeholders.
“To date, most discussions about building a “faster payments” system have focused primarily on speed and “plumbing.” Even more important, however, are the innovative products and services that an enhanced infrastructure will allow financial institutions to bring to market. These new products and services—in both consumer and corporate payments—can create new revenue streams and help banks and other players realize a return on their investment in a modernized payments system.”
Faster payments: Building a business, not just an infrastructure; McKinsey on Payments Volume 8, Number 21
Quite simply Tereon delivers:
- Real time settlement without a requirement for pre-funding
- Interoperability within and between schemes using any data format and implementing any rules
- Real time rails that connect banks and non-bank service providers
- Distributed trust in private ledgers bringing the benefits of blockchain without the performance constraints or need for new regulations
- 31 use cases out of the box plus a RAD/RP toolset to develop new services ensuring that an investment in Tereon is future proofed
Much Less Upfront Investment
- Highly scalable, secure and resilient cloud-native architecture
- Existing communications infrastructure
- Full range of APIs for integrations
- No PCi DSS requirement
- Uses commodity end-point devices and credentials securely
And Reduces Back-Office Costs
- Handles all data formats
- Real-time records for real-time analysis
- Improved security model reducing risk and compliance workload
- Much reduced reconciliation effort
- Enables service innovation
Next Steps in the USA
At the time of writing we know that there are two real-time schemes in place. We look forward to the industry response and, in particular, the Federal Reserve Banks’ response to the Task Force report.
Is there a requirement for a third scheme?
- to satisfy the needs of all stakeholders?
- including the large banks who will get more functionality and tools to reduce back-office costs?
- across a wide array of use cases?
- and with an inclusive governance model?
Will that requirement be met?
- by the Fed?
- by the private sector?
- not at all?
Let us know what you think
And in the Rest of the World……
An early version of Tereon was built for, and proven in deployment, with minimal infrastructure in Africa. The Kalypton proposition is quite simple. Much more functionality, meeting existing regulatory requirements anywhere, for less money.
A modest and future proofed investment is all it takes
Real-time payments for all!
Get in touch to bring RTP to your environment now.