Open Banking and Immediate Payments
Capsys is an important stakeholder and expert of the Hungarian instant payments market. Besides our in-depth experience in the implementation of instant payments Capsys is constantly monitoring the actual functioning of the market.
The following presentation provides an overview about the initial phase of the service period in Hungary with a summary of officially available payment statistics.
Instant payment as a service has become a norm in the payments market not only in Europe but worldwide. This process has also been marked by a special conference devoted to the instant payments notion. Capsys participated already in the first round of the series of this conference in Brussels in 2017, that time sitting in one of the panels.
As this year the Hungarian instant payment implementation project had been finished just ten days prior to the conference. Robert Kiszely, Professional leader of Capsys was invited to make a special presentation at the conference. The presentation could not be held personally because of the special health regime but is herewith published as a Capsys Insight study.
Over the last 3-4 years, there has been a revolutionary change in global payment services, with the introduction of infrastructures processing money transfers in 5-10 seconds in many countries around the world.
The below presentation discusses whether the basic infrastructure is sufficient and, if not, how it can be expanded, what types of services can be provided through the new system. What is the operational model of the system in the euro area, what types of cross-border services can be "planted" on the new infrastrucure?
Capsys, as an expert of instant payments systems, addresses these issues in the attached presentation.
When regulation and market initiatives meet, they catalyze the transformation of financial services: it has been long overdue that banks perform a digital transformation and PSD2 of the European Commission and instant payment standards promoted by the European Central Bank pave the way. It is a complete paradigm change that is taking place, financial transactions, similarly to other industries, are becoming an instant experience for everyone, across all channels and at any time.
B2B fintech companies, such as Capsys assist the financial industry in its effort to perform the digital transformation.
Why bankcard cannot be regarded as fintech, and indeed, what do we mean under fintech?
Having seen the presentation, the reader can get a picture of the fintech companies' special areas of operation, their goals, comparative advantages, i.e. of all the things that prompt us to refer to them as fintech. Even if there is some reservation with regard to them now and then, on the whole their activity is extremely useful.
Neither the instant payment system, nor the bankcards are regarded as fintech achievements, despite the fact that these are technological innovations and dominate the retail payment markets of our days. At the same time, Transferwise is fintech; the presentation illustrates the fintech process by presenting its services.
The author believes that the fintech activity in the 21st century forms part of process of the industrial revolutions which commenced in the 19th century, even if it is presumably not the last one.
Shortly it will be possible in Hungary as well to process instant – 5 second – payments. This is a great achievement, but it costs banks a fortune; is it really worth it? It is difficult to foretell, but the train of progress should never be missed; this is what those 17 European countries where the system is already up and running thought.
The P2P payment system, offering higher profitability, already operates in a few countries and cross-border services have also commenced. Many believe that the request-to-pay system is the most promising solution since this system is necessary for the execution of the merchant (POS) payments, and also for the replacement of the postal money orders.
Capsys has been invited to the Brussels-based working group that developed SEPA, and thus we will be the first in the region to be informed of and to promote the new rules as we approach the year-end, and provide support for making the regulation of Giro Zrt. comprehensive in this respect as well.