1、Discover new opportunities to streamline and grow your business in this country-by-country primer on domestic payment systems. The Last-Mile Playbook for Global Payments The Playbook at a Glance Blockchain and digital asset technology is transforming the complex and often unreliable global payments

2、process. When paired together, these technologies offer a solution for streamlining the entire payments system, especially the “last mile” where speed, transparency and liquidity are critical for efficient payment processing. Find out what your organization needs for the last mile to build different

3、iated value propositions in 14 key regions including Mexico Thailand and Nigeria. Revolutionizing Todays Cross-Border Payments Through the power of blockchain technology, financial institutions are enabling seamless, instant global payments. This transformation is providing access to new markets and

4、 opening revenue streams for financial institutions. Blockchain enables real-time settlement, complete end-to-end transparency into the payment process, instant confirmation of delivery and certainty that the full amount is received in the recipients home currency, inclusive of the last mile. These

5、capabilities are all critical to achieving straight-through processing in cross-border transactions. This new technology offers huge opportunity for financial institutions to resolve persistent complexities in todays payment ecosystem. What Is the Last Mile in Payments? Similar to supply chain manag

6、ement and transportation logistics, the “last mile” in global payments refers to the movement of value from a financial institution to the final delivery destination, the end recipient. This last leg of the payments journey is plagued with inconsistencies, due in part to the differing policies and i

7、nfrastructure, country to country. In many emerging economies, much of the global population remains unbanked and must seek alternative means for payment receipt. To meet this demand, the last-mile payment incurs additional time for settlement and costs. Connecting these different domestic networks

8、is just another roadblock in the last-mile payment experience. In an attempt to create more cross-border interoperability between the different local payment networks, industry players are building new capabilities atop a complicated web of legacy systems. This practice is not fixing the root cause

9、of slow global payments. Rather, these solutions are glossing over the original prohibitive infrastructure. Until this base infrastructure is improved, performance will always be limited. The adoption of blockchain alleviates these constraints by unifying the underlying infrastructure and uniting th

10、e framework of institutions and suppliers working on top of itthereby, enabling a seamless last mile process that meets consumer expectations and needs. SECTION I Simplifying Last-Mile Payments In an attempt to create more cross-border interoperability between the different local payment networks, i

11、ndustry players are building new capabilities atop a messy web of legacy systems. Until this base infrastructure is improved, performance will always be limited. 2 Blockchain-enabled technology is overcoming these limitations of legacy systems. But, at the foundational level, it is the domestic paym

12、ent networks that create the most restrictions in terms of speed and transparency during the last mile. Across regions, there are significant process variants with respect to how modern and efficient the last-mile payment networks are. An example of a country thats managed to modernize their domesti

13、c systems to achieve real-time settlement and interoperability in low-value payments is India, with Unified Payments Interface (UPI). Todays Complicated Global Payment System Large, traditional messaging networks for sending and receiving money transfer instructions are a core component of the legac

14、y process underpinning global payments. These networks have several serious drawbacks that result in slow settlement times and zero visibility into the payment process. Messaging on these networks isnt in lock-step with the movement of funds. Additionally, there is a limitation in the richness of da

15、ta and the structure in which it can be transmitted. Also, these networks dont always have bi-directional messaging to enable pre-validations or confirmations. Instead, the primary function is to send payment orders between a long chain of correspondent banks, who ultimately settle the payments. Thi

16、s process requires financial institutions to build relationships and integrations in each countrya complex, time consuming experience that can take up to six months, cost thousands of dollars and tie up liquidity. Cross-Border Payments Take Weeks to Settle Payment service providers sending a transac

17、tion from the U.S. to Argentina, for example, must follow this process today: 1-2 Days to Settle 1-5 Payment is then sent through a cross-border network or via a correspondent bank. Days to Settle Senders pay into the provider sending funds through the ACH or the card rails, as a requirement. Days t

18、o Settle 1-2 Once payment arrives in the receiving country, it goes through the receiving countrys payment system. This leg of the process is known as the last mile. *Total Maximum Days to Settle: 9 Days Traditional messaging networks have several serious drawbacks that result in slow settlement tim

19、es and zero visibility into the payment process. Blockchain-enabled technology is overcoming these limitations of legacy systems. 54 SECTION II Your Guide to the Payments World The Future Is Blockchain and Digital Assets Today, countries around the world are addressing the frictions inherent in the

20、last mile by upgrading and modernizing their domestic payment schemes. Out of 195 countries, there are now over 54 real-time payment schemes developed and many more in development globally.1 These new systems enable real-time settlement of low-value payments and rich data transfer. Governments are e

21、nsuring broad access to this through banks or other financial institutions and trying to empower domestic interoperability via standardized messaging and identity schemas. This presents an opportunity to connect these domestic systems and create compatibility for cross-border payments through modern

22、 payment networks. Indias Demand for Real-Time Solutions In 2016, mobile wallets exploded in India amid an influx of mass cell phone adoption and creation of mobile-first businesses. With this shift, the Indian government recognized a need for a unified network that enables wallets and bank accounts

23、 to both build applications on top of the payment system and be able to send and receive money from each other. Indias vision for payments addressed broad coverage, simplicity, reliability, affordability and convergence of disparate networks. Of these, convergence was the most challenging due to the

24、 lack of interoperability between the broad array of existing options. UPI, which was built for the purpose of enabling interoperability for real-time domestic payments. Aside from the added compatibility, through a set of APIs, UPI linked contrasting interfaces and provided seamless authentication

25、and authorization. UPI is transforming digital payments in India and enabling greater competition and innovation. Blockchain and digital asset technology provide a payment solution that is ubiquitous internationally, solving todays pain points. When paired with blockchain technology, digital assets

26、act as a bridge between two currencies, ensuring payments are sent and received in local currency in real- timefor example, last mile liquidity. The need for a standard international payment system that is both fast and verifiable is reaching critical mass. Already at $127T per year, the value of in

27、ternational payments continues to grow at rates faster than the economy.2 To provide a clear understanding of the opportunities of the last mile systems that are necessary for global payments, weve pulled together a simple guide for building differentiated value propositions in key markets. *99# Pay

28、ment System Players (PSP) NPCI Unified Payment Interface APBS NACH Central Repository UID-BIN & Mobile-Ac IMPSAEPS RuPayEcomNFS NUUP (USSD) 3rd Party Apps (Collect only) Mobile Application PPI/MM/Wallet Providers Mobile Application Banks/Payment Banks Mobile Application Other Regulated Providers Int

29、ernet Banking 3rd Party Apps (Collect only) *99# is NPCI USSD Service Code to access banking services via a phone. 6 AUSTRALIA 4.0 THAILAND 3.5 INDIA 4.5 BRAZIL 3.0 COLOMBIA 2.0 ARGENTINA 2.0 PERU 2.0 EUROPE (SEPA) 4.5 USA 4.0 NIGERIA 3.5 POLAND 3.0 PHILIPPINES 3.5 MEXICO 3.5 UK 4.5 Legend A Global

30、View: Opportunity in the Last Mile 5.0 High market opportunity Modern payment rails 1.0 Low market opportunity Older payment rails and low penetration The country scores are determined by considering the market size of low-value cross-border payments and capabilities of the last-mile payment system.

31、 Markets that score a five on each pillar have: i. a high level of incoming low-value payments (above $100B) ii. a modern domestic payment system for low-value payments that is real-time 24*7*365, widely penetrated and enables additional layers of services SECTION III Live Countries Opportunity Size

32、 Total Remittance Flows: $4.58B Total SME Flows: $48.6B Customer Characteristics Payout Preference: Cash, Banks Unbanked Population: 52% Local Payment Platform Name: Medio Electrnico de Pagos (MEP) Year Live: 1997 Speed of Posting to Accounts: Unknown State of Digital Asset Regulation Digital Asset

33、Classification No specific classification of digital assets. Guidelines for Digital Asset Exchanges Not subject to licensure or registration. Currently not subject to anti-money laundering (AML) regimes, but likely to change soon. Considerations for Using Digital Assets to Source Liquidity FX regula

34、tions limit purchase of digital assets via credit or debit and must transfer funds to the exchange account through non-card payment rails. Foreign exchange laws and currency controls are a potential hurdle. Winning Move Get ahead of the FX regulations and liquidity management to protect your margins

35、. Maximum Value: Unknown Individual/Batch Payments: Batch Speed of Settlement: Between 8-20 Hours Operating Hours: Unknown Open APIs: Unknown Payment Applications/Overlay Services: Unknown All Regional Sources Include: World Bank, OECD, FXC Intel and Ripple-Owned Analysis.3 Argentina 11 Opportunity

36、Size Total Remittance Flows: $4.5B Total SME Flows: $137.7B Customer Characteristics Payout Preference: Cash Unbanked Population: 22% Local Payment Platform Name: SITRAF Year Live: 2002 Speed of Posting to Accounts: Less Than 1 Minute State of Digital Asset Regulation Digital Asset Classification No

37、 specific classification of digital assets. Guidelines for Digital Asset Exchanges Not subject to licensure, registration or any specific guidance from regulators, including AML authorities. Considerations for Using Digital Assets to Source Liquidity Foreign exchange laws and currency controls are a

38、 potential hurdle. Winning Move Work with a local clearing agent that has an FX partner set-up for your business use case. Maximum Value: BRL 1 M Individual/Batch Payments: Individual Speed of Settlement: Every Five Minutes Operating Hours: 07:3017:30 on Business Days Open APIs: No Payment Applicati

39、ons/Overlay Services: P2P, P2B, G2P Opportunity Size Total Remittance Flows: $18.8B Total SME Flows: $43M Customer Characteristics Payout Preference: Banks Unbanked Population: 1% Local Payment Platform Name: NPP Year Live: 2018 Speed of Posting to Accounts: Real-Time State of Digital Asset Regulati

40、on Digital Asset Classification Legal status of a token or coin dependent on its individual characteristics, which determines whether existing regulations apply (i.e. does the token confer rights and is it a financial product?). Guidelines for Digital Asset Exchanges Must register with Austrac, the

41、local financial crimes regulator. The requirements will generally require an exchange to develop, implement and maintain an AML program, register with the local financial crime agency and perform periodic reporting on potentially violative activity. Considerations for Using Digital Assets to Source

42、Liquidity A digital asset may be treated as an asset that is held or traded and not as money or a currency. Certain activities could deem an entity to be categorized as a “remittance provider.” Winning Move Be ready to connect to NPP for a competitive edge, if and when it becomes widely available fo

43、r straight-through processing of cross-border payments. Maximum Value: No Limits Individual/Batch Payments: Individual Speed of Settlement: Seconds Operating Hours: 24/7 Open APIs: Yes Payment Applications/Overlay Services: P2P, P2B, B2P, B2G, B2B and G2P through account aliases and app-based paymen

44、ts with open API-based overlay services. BrazilAustralia 1312 Opportunity Size Total Remittance Flows: $234B Total SME Flows: $1.7T Customer Characteristics Payout Preference: Mostly Bank Account Unbanked Population: 10% Local Payment Platform Name: SCT Inst Year Live: 2017 Speed of Posting to Accou

45、nts: Ten Seconds State of Digital Asset Regulation Digital Asset Classification Although nations in the EU (and EEA) conform to general standards (for example, set by the European Commission and/or European Central Bank), each individual region may have a particular stance on both digital assets in

46、general as well as whether or not a financial institution can hold a digital asset. Therefore, it is largely a facts and circumstances analysis. Guidelines for Digital Asset Exchanges Exchanges in EU regions must comply with the Fifth Anti-Money Laundering Directive (5AMLD), which requires each coun

47、try to transpose 5AMLD into local law. The requirements will generally require an exchange to develop, implement and maintain an AML program, register with the local financial crime agency and perform periodic reporting on potentially violative activity. Considerations for Using Digital Assets to So

48、urce Liquidity Similar to the categorization of digital assets, although EU and EEA member countries follow general standards, certain activities that rely on traditional banking rails may be viewed as requiring authorization within the regulatory perimeter in a particular region. Winning Move For a

49、 competitive edge, access SEPA Instant for real-time payments. Maximum Value: 15,000 Euros, rising to 100,000 Euros (July 2020) Individual/Batch Payments: Both Speed of Settlement: Multiple settlement blocks through the day Operating Hours: 24/7 Open APIs: No Payment Applications/Overlay Services: P2P, P2B, B2P, B2B payments through mobile and internet including pull-payments and