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Fantomas

Europe goes through instant payment, alternative to Visa or MasterCard

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Here is the (google) translation of an article published this morning in LeMonde, an important French newspaper:

https://www.lemonde.fr/economie/article/2018/11/30/l-europe-passe-au-moyen-de-paiement-instantane_5390658_3234.html

https://news-24.fr/international/6021/Europe--L’Europe-passe-au-moyen-de-paiement-instantané-alternative-à-Visa-ou-MasterCard.html

Quote

This is a very concrete service that Europe will now offer to citizens and businesses on the continent. Friday, November 30, at noon, the French bank Natixis (People's Bank Group, Savings Bank) and the Spanish CaixaBank will exchange an instant payment using for the first time the big pipes of the European Central Bank (ECB). In just a few seconds, funds will go from one account to another. Only eight European institutions are now ready to issue or receive this new type of cross-border real-time settlement, but other institutions are working on it and will propose this tool in the coming months.

What will be the gain for the individual, who already has a credit card, a checkbook and cash? The most notable effect is the processing time of payments. The electronic transfer will be carried out in less than ten seconds (tests carried out by the ECB show that the average time is in fact close to one second), seven days a week, 24 hours a day. For comparison, when a customer uses his credit card on a Friday night, the trader usually receives funds only on Tuesday morning.

The holder of a bank account can gradually use it to pay "from person to person", to pay for shopping in the supermarket, pay online at an e-shop or pay taxes. After the payment, an immediate confirmation will be sent to its author, confirming that the beneficiary has received the money on his account, and making the transaction irrevocable (while a bank can now recall a payment in process ).

Variable cost according to the banks
"At first, to pay between individuals in real time, it will communicate its IBAN (bank details). But, in the first half of 2019, at BPCE, a mobile phone number will suffice: it will be associated with an IBAN. At the euro area level, the ECB is building a similar mechanism combining telephone number and bank account, which will also be available in 2019, "said Dominique Beauchamp, Deputy Chief Executive Officer of Natixis Payment Solutions. To pay in the supermarket, different solutions are currently under study, as a scanner with its bank app a QR Code (two-dimensional barcode) on the cash register of the store.

Another advantage: the instant payment will also settle larger sums, with a ceiling of 15,000 euros per transaction in France, which should be increased in the future.

 

Edited by Fantomas

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2 hours ago, Rey said:

Don't rule out RT1. It will be connected to TIPS also.

RT1 (by EBA Clearing) is connected to Ripplenet and a lot of European banks are already connected to RT1 since the end of 2017.

Also LUXHUB as a Temenos partner is presently very active and connecting via the European PSD2 (https://en.wikipedia.org/wiki/Payment_Services_Directive, first 5 sentences) initiative. Quotes "The Directive's purpose was to increase pan-European competition and participation in the payments industry also from non-banks, and to provide for a level playing field by harmonizing consumer protection and the rights and obligations for payment providers and users" AND "ISO 20022 XML message format".

What we are presently seeing is the last phases of the plumbing being done. As a result I am expecting some traction in december 2018.

So... Yes, probably yes. And it's definitely not all about TIPS. TIPS is just another piece in the puzzle.

Note: For intitutional inflow of capital both the last week of december (tripple witching day) and january (Bakkt onboarding) will be interesting to watch.

Edited by cryptoxrp

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The article posted by the OP mentioned a FRENCH bank and a SPANISH bank doing intra European instant payments as of November 30th.

The link I posted, originates from the ECB, you really think this is not all about TIPS (TARGET Instant Payment Settlement)? Tell me what other authority in Europe is in charge of payments/payment settlement. Fine, let's agree to disagree. Connecting dots is fine however as far as I know there is no evidence whatsoever that any Ripple product is involved in intra European instant payments by banks.

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1 hour ago, Rey said:

The article posted by the OP mentioned a FRENCH bank and a SPANISH bank doing intra European instant payments as of November 30th.

The link I posted, originates from the ECB, you really think this is not all about TIPS (TARGET Instant Payment Settlement)? Tell me what other authority in Europe is in charge of payments/payment settlement. Fine, let's agree to disagree. Connecting dots is fine however as far as I know there is no evidence whatsoever that any Ripple product is involved in intra European instant payments by banks.

It's not only about TIPS. It's the gateway from EquensWordline https://worldline.com/en/home/newsroom/press-releases-general/2018/pr-2018_11_21_01.html that helps making the connection to TIPS that is interesting (the plumbing). Hopefully you will now see TIPS going live in a broader perspective.

"Utrecht, 21 November 2018 – equensWorldline SE, a subsidiary of Worldline [Euronext: WLN], the European leader in the payments and transactional services industry,  successfully launched its TIPS Gateway service, with several internationally operating tier 1 and tier 2 banks going live in the first half of 2019. With the equensWorldline TIPS Gateway service, banks have the benefit of a single interface for Instant Payments for both the equensWorldline Instant Payments CSM and its EACHA Instant Payments Interoperability links, as well as for their connection towards the TARGET2 Instant Settlement solution offered by the Eurosystem. The launch of the TIPS Gateway service seamlessly fits with equensWorldline’s ambition to support the market in the easy and cost-effective implementation of Instant Payments."

"In addition, the industry leading algorithm-based liquidity forecasting, that equensWorldline offers to participants of its Instant Payments CSM, will also become available to users of its TIPS Gateway service. This will allow the banks to optimize their liquidity across the different settlement mechanisms."

Functionality:

24/7/365 with 99,999% availability

500 milliseconds per transaction in high throughput context

500 transactions per second, up to 20 million transactions per day

Support EPC rulebook and AOS in MULTI-CSM environment  (CSM = Clearing Settlement Mechanism)

Configurable processing in order to deploy various use cases

Natively multi-bank , multi-currency, multi-schemes

Flexible integration with client channel applications, including Open Banking

Liquidity management for proprietary account and indirect participants

Partner source: https://equensworldline.com/en/home/solutions/payments/payment-and-liquidity-hub.html  (yes, EBA Clearing is in the list)

Edited by cryptoxrp

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33 minutes ago, cryptoxrp said:

It's not only about TIPS! It's the gateway from EquensWordline https://worldline.com/en/home/newsroom/press-releases-general/2018/pr-2018_11_21_01.html that helps making the connection to TIPS that is interesting (the plumbing). Hopefully you will now see TIPS going live in a broader perspective.

"Utrecht, 21 November 2018 – equensWorldline SE, a subsidiary of Worldline [Euronext: WLN], the European leader in the payments and transactional services industry,  successfully launched its TIPS Gateway service, with several internationally operating tier 1 and tier 2 banks going live in the first half of 2019. With the equensWorldline TIPS Gateway service, banks have the benefit of a single interface for Instant Payments for both the equensWorldline Instant Payments CSM and its EACHA Instant Payments Interoperability links, as well as for their connection towards the TARGET2 Instant Settlement solution offered by the Eurosystem. The launch of the TIPS Gateway service seamlessly fits with equensWorldline’s ambition to support the market in the easy and cost-effective implementation of Instant Payments."

"In addition, the industry leading algorithm-based liquidity forecasting, that equensWorldline offers to participants of its Instant Payments CSM, will also become available to users of its TIPS Gateway service. This will allow the banks to optimize their liquidity across the different settlement mechanisms."

Functionality:

24/7/365 with 99,999% availability

500 milliseconds per transaction in high throughput context

500 transactions per second, up to 20 million transactions per day

Support EPC rulebook and AOS in MULTI-CSM environment  (CSM = Clearing Settlement Mechanism)

Configurable processing in order to deploy various use cases

Natively multi-bank , multi-currency, multi-schemes

Flexible integration with client channel applications, including Open Banking

Liquidity management for proprietary account and indirect participants

Nobody builds an island in 2018. I'm not arguing about any possible future instant payment technology. Sure there'll be hooks to support that.

I'm only saying that as it is right NOW intra European instant payments (Euro to Euro currency) between banks do not involve any Ripple product.

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11 hours ago, Rey said:
11 hours ago, Esprxp said:

Any relationship with Ripple / XRP?

No, probably not. It's about TIPS (scheduled to go live today).

https://www.ecb.europa.eu/paym/target/tips/html/index.en.html

Edited 9 hours ago by Rey

Ripple is an option under TIPS - Ripple will probably continue to target the more inefficient corridors for now.image.png.17988a163a3c1948ab2b715f00e0cfd9.png

Ripple’s xCurrent, xVia and XRP-powered xRapid come into focus as TAS Group and ECB gear up for TIPS launch

Published November 29, 2018

By Anirudh VK

https://ambcrypto.com/ripples-xcurrent-xvia-and-xrp-powered-xrapid-come-into-focus-as-tas-group-and-ecb-gear-up-for-tips-launch/

"Opinion: The European Central Bank [ECB] recently announced that they would be launching a system for faster payments in the Eurozone. This system is known as Target Instant Payments System, and aims to offer a settlement of instant payments in Euro, with users being able to access it any time of day and any day of the year. At first glance, this might be the beginning of the end for the actual use-case of crypto-assets. However, one digital asset may as well benefit more from this move than many may think."

"... Ripple, the FinTech company aspiring to solve the cross-border payments ecosystem, seems to have ensured its place in the future of evolving payments. They have achieved this through two main moves, with the primary being their partnership with TAS Group."

12 hours ago, Fantomas said:

"At first, to pay between individuals in real time, it will communicate its IBAN (bank details). But, in the first half of 2019, at BPCE, a mobile phone number will suffice: it will be associated with an IBAN.

https://www.investopedia.com/ask/answers/100214/whats-difference-between-iban-and-swift-code.asp

What's the difference between an IBAN and a SWIFT code?

By Mary Hall | Updated December 20, 2017

"The main difference between an International Bank Account Number (IBAN) and a Society for Worldwide Interbank Financial Telecommunication (SWIFT) code lies in what they identify. A SWIFT code is used to identify a specific bank during an international transaction, whereas IBAN is used to identify an individual account involved in the international transaction. Both play an essential role in the smooth running of the international financial market."

Edited by GiddyUp
clarity

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