3 PAYMENT METHOD SCORECARD: PAY BY BANK (REAL-TIME PAYMENTS)
Decision-Making Forums There are decision-making forums surround real- time payments, e.g., Faster Payments Council. However, it is our understanding these forums may not have hard decision-making power. Decision-Making Balance Governance is a mixture of public and private organizations. Including more stakeholders in the decision-making process surrounding bank transfers could prove beneficial. TCH in U.S. owned by banks; Faster Payments in the UK run by banks and Mastercard; FedNow in U.S. is central bank; Pix in Brazil is central bank; UPI in India is NPCI (initiative of central bank). Fee Setting Real-time payment fees are mostly set by competition. In the U.S. the ACH is governed by Nacha, whose interests may lean more towards the banks, but is also subject to the Federal Reserve. Central Bank Support Both UPI in India and PIX in Brazil have received support from their central banks.
Governance
Metrics
Weight Score
Presence of Regulation (Merchant) Presence of Regulation (Consumer) Central Monitoring (Public/ Private) Decision-Making Forums Decision-Making Balance
13% 4.0
13% 4.0
13% 3.0
13% 4.0 25% 3.5 13% 4.5 13% 5.0
Fee Setting
Central Bank Support
TOTAL SCORE
3.9
Regulation Presence (Merchant) Brazil’s centralized government support of PIX and use of regulation has encouraged users to adopt this payment method. 850 The consumer adoption of PIX has increased competition in Brazil’s payment landscape with the number of PIX transactions reaching 80% more than credit and debit combined in Q3 2024. 851 Regulation Presence (Consumer) Brazil’s centralized government support of PIX and use of regulation has encouraged users to adopt this payment method. 852 Central Monitoring (Public/Private) The central monitoring authority of real-time payments varies by platform. PIX in Brazil is owned by the Brazilian Central Bank. Unified Payments Interface (UPI) in India is owned by the National Payments Corporation of India which is a not-for- profit organization created by the Reserve Bank of India. New Payments Platform (NPP) in Australia is mutually shared by stakeholders and the Reserve Bank of Australia.
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