BIS CPMI report Highlights Rapid Development of Retail Fast Payments

The implementation of retail fast payment systems (FPS) across the globe is continuing at a rapid pace, with significant implications for incumbent real-time gross settlement (RTGS) systems, according to a report published today by the Bank for International Settlements' Committee on Payments and Market Infrastructures (CPMI).

Developments in retail fast payments and implications for RTGS systems takes stock of recent developments in retail FPS, discusses the implications for RTGS systems and examines the role of central banks in these systems.

Based on a survey of CPMI member jurisdictions, the report highlights the following findings and implications:

  • global implementation of fast payments is continuing at a rapid pace;
  • the use of a given FPS (ie adoption rate) is generally low in the early stages of its implementation, although some recent FPS have been more rapid in their take-up;
  • FPS can have significant implications for the operations and services of RTGS systems in the same jurisdiction, such as the modification of access criteria and extension of operating hours;
  • FPS are increasingly settling obligations between banks and, where relevant, non-bank FPS participants on a gross (ie payment-by-payment) basis in real time;
  • most jurisdictions have either adopted or are moving towards ISO 20022 as the messaging format for their FPS; and
  • while differences in approaches remain, central banks tend to play important roles in facilitating the operations of FPS.

The report also highlights that designing, implementing and operating an FPS is complex. Challenges include ensuring high system availability (eg during nights and weekends) and reliability requirements.

A copy of the release can be viewed here.

Bank of International Settlements