Payments Platforming

Michael Moon

Real Time Payments Summit

June 14th 2019

Payments market consolidation: emergence of large

payment specialists rivalling banks for scale

Visa boosts offer for Earthport

in battle with Mastercard –

Reuters

Fiserv to buy First Data for

$22bn, forging Payments

giant – Bloomberg

FIS buys Worldpay for $35bn

as payment consolidation

heads up – Forbes

Ant Financial to acquire

U.K.’s Worldfirst – Wall Street

Journal

Global Payments, TSYS $21.5B

Merger– Wall Street Jourrnal

Sydney June 2019

mission

Sydney June 2019

Sydney June 2019

SWIFT – A single interconnected and open platform

• Global reach, in seconds

• Single platform, multiple capabilities

• External providers, marketplaces

and third parties

• Governance

• Security, Standards, APIs

• Domestic and Cross-Border

SWIFT Platform

SW

IFT

Corp

ora

tes

Banks

Securities

Fin

Tech

Part

ners

Etc

…

Messaging

Connectivity

Banking & MI Platform

Securities Platform

Data & Transaction

Standards

Platform for:

• Transacting

• Experimentation (innovation)

account-to-

account

within

markets

Sydney June 2019

Sydney June 2019

Australia NPP – Supported by SWIFT Infrastructure

• Connectivity

• Standardisation (20022)

• APIs

• Security, resiliency, availability

• Simpler addressing

Sydney June 2019

Other Instant Payment Markets supported by SWIFT Real-Time Solutions

• Europe - Target Instant Payment Settlement (TIPS)

• Hong Kong – Faster Payments Service (FPS)

• Malaysia – Real-Time Retail Payments Platform (RPP)

.. and more.

account-to-

account

anywhere in

the world

Sydney June 2019

Payments – looking to the future

Our vision

Instant, 24/7

Ubiquitous

Plural

Smart

Clean

Connected

Structured

Open

Embedded

Innovative

Trusted

Secure Make cross-

border

payments as

seamless and

convenient as

domestic

ones: instant,

accessible,

ubiquitous

Sydney June 2019

gpi for Allgpi Services

gpi ExpansionSydney June 2019

3500+ Committed banks

80% of SWIFT cross-

border payments covered

480+ Live banks

55+% of SWIFT

cross- border payments sent as gpi

1200+ country corridors

300,000,000,000 USDsent daily via gpi

gpi adoption

Sydney June 2019

gpi traffic reaching unseen heights

JAN ‘17 FEB MAR APR MAI JUN JUL AUG SEP OCT NOV DEC JAN ‘18 FEB MAR APR MAI JUN JUL AUG SEP OCT NOV DEC

JUL 2017

1,000,000

DEC 2017

10,000,000

DEC 2018

150,000,000gpi payments sent

Sydney June 2019

JUN 2018

50,000,000

Instant

payments(Live Q2)

Corporate

initiation &

tracking (Live Q2)

Financial

institution

transfers(Live Q4)

Pre-validation(Pilot Q2-Q3)

Case resolution(Live Q4)

Visibility on

incoming

payments(Pilot Q3)

Request

to pay(Prototype - Sibos)

SWIFTgpi 2019 roadmap

Sydney June 2019

Customer credit transfer

Stop and recall

Cover paymentsgpi Link (PoC Q1-Q2)

Sydney June 2019

Core interbank services - 2019

Changes to Customer credit transfers – Cover payments and Stop and recall

General availability of gpi Instant payments

Tracking of Financial institution transfers

Instant

Sydney June 2019

SWIFT gpi is dramatically speeding up cross-border payments.. to credits in seconds!

9%

3%

4%

6%

8%

5%

10%

9%

5%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Within 5 minutes

Between 5 and 15 minutes

Between 15 and 30 minutes

Between 30 minutes and 1 hour

Between 1 and 2 hours

Between 2 and 4 hours

Between 4 and 6 hours

Between 6 and 12 hours

Between 12 and 24 hours

More than 1 day

40% within

5 minutes

40%

Many in

Seconds!

95% within

24 hours

gpi instant payments concept: clearing last leg over Instant MI

Use case 1 – Instant cross-border payment, between gpi banks

Use case 2 – Instant cross-border payment, via gpi banks into domestic instant payment system

gpi tracker

gpi cross-borderDomestic instant payment system Domestic instant payment system

Sydney June 2019

Power of the platform: gpi instant payments

AU

SG MYCNTH

HKIN

EU

Cash from China to

Australia in 18

seconds

Sydney June 2019

Sydney June 2019

Core interbank services - 2019

Changes to Customer credit transfers – Cover payments and Stop and recall

General availability of gpi Instant payments

Tracking of Financial institution transfers

API capabilities

Example: Pre-Validation

Innovating faster with APIs

Collaborative process of

converting business process

into technical specifications to

design APIs, and finalise as

API contracts.

Enabling seamless

connectivity to consume

APIs, bringing content

providers and consumers

together

Publishing API contracts on

the developer portal for the

Community to self serve what

is available, and can test

using a sandbox

Modelling ConsumptionPublishing

SWIFT Content

Community Content

SWIFT Collaborative modeling

tools and methodologies,

powered by SwaggerHub

SWIFT API Gateway, with SWIFT

content APIs and Community

content APIs, with consumption

options

SWIFT Developer Portal with

Sandboxes and SWIFT API

Catalogue

Sydney June 2019

Sydney June 2019

SWIFTgpi pre-validation

Initiating

Bank

Intermediary

Bank

Ordering

Customer

Beneficiary

Customer

Beneficiary

Bank

SWIFTgpi SWIFTgpi

gpi tracker

Initiating

Bank

Ordering

Customer

Pre-Validation

• Increased STP

• Predictable outcome (time

& charges)

Sydney June 2019

Core interbank services - 2019

Changes to Customer credit transfers – Cover payments and Stop and recall

General availability of gpi Instant payments

Tracking of Financial institution transfers

For corporates : g4c

Sydney June 2019

gpi for corporates (g4c)

gpi payments, integration in e-banking portals

16+

gpi payments, visibility through bank support

Integrated in ERP/TMSUETR generation &

multi-bank tracking

g4C

Live for early adopters (general availability Q2 2019)

124

Payables

Receivables

Payment initiation & tracking - Live (early adopters)

UETR

Payment +UETR

TrackingUETR

Payment advice & in-flight tracking - Pilot (Q3 2019)

Payment advice &

tracking

UETRUETR

Sydney June 2019

g4C early adopters

Sydney June 2019

Core interbank services - 2019

Changes to Customer credit transfers – Cover payments and Stop and recall

General availability of gpi Instant payments

Tracking of Financial institution transfers

Link with trade and ecommerce

Sydney June 2019

Expansion : linking with marketplaces, ecommerce, other platforms …

Supply chain

ecosystem on

blockchain XYZ

Trade Finance

ecosystem on

blockchain 123

Insurance

ecosystem on

platform ABC

B2B ecosystems are flourishing… …but settlement within the ecosystem

remains a challenge…

tra

nsa

ctio

n

Settlement ?

Little appetite for settlement in crypto

currencies

Global bank adoption hard to achieve

(multiple integrations)

Automated payment confirmation is

often key to B2B ecosystems

Pressing need for fast, transparent,

global and secure settlement in fiat

currencies initiated from the

ecosystem

Sydney June 2019

gpi Link – Scalable Settlement for Trade Ecosystems

gpi Link to R3 is the first POC use case

• R3 supports live ecosystems with a need for settlement

in fiat currencies

• The gpi Link will allow gpi payment capabilities to be

embedded directly into R3’s DLT platform

gpi

gpi

LinkThe gpi Link POC is fully scalable to other use cases:

• SWIFT may include in the POC other DLT or non-DLT

business ecosystems, other DLT providers, e-commerce

players, payment service providers etc.

• Key driver will be a common interest in enabling

settlement capability for trade transactions

Fully digitised and

information-rich

platform

20022

Update exhibition and conference

Sydney June 2019

www.swift.com

Sydney June 2019