Interoperable payment networks can catalyses growth in transaction volumes

1. TerraPay Poster Text
Countering Fragmentation with Open Networks
Interoperability across Payment Platforms

2. The Interoperability Imperative

3. DFS
Providers
Telecom
operators
Payment
companies
Banks
Remittance ecosystem
Proliferation of providers of different types and sizes
MTOsSocial
networks
Lack of market-wide interoperability

4. High investment –
infrastructure, set-up,
distribution
Limited first and last mile
access
High incidence of
cash usage
Duolicated
investments
Access
Fragmentation & proprietary functioning
Impact on industry
Diseconomies
of scale
Expensive
products
Formal
market
Informal
market
US$ 64B
3X?
7%
12%
Costs
Global
Costs
Africa

5.  CUSTOMER ACQUISITION
 CUSTOMER EXPERIENCE
 PRODUCT PRICING
 PAYMENT PROCESSING
 PAYMENTS CLEARING
 PAYMENTS SETTLEMENT .
COLLABORATE
COMPETE
Compete or Collaborate?

6. Current interoperability models are limited in scale
Commercial
• Time to market
• OPEX intensive – Set-up
costs / Higher liquidity
requirements
Regulatory
• Licensing / Bank
Accounts / AML
& Compliance
Technical
• Proprietary deployments
• Lack of standards
• Varying levels of digital adoption
and maturity
18-24 weeks
to on-board
a single partner
Challenges

7. New payment rails to carry transactions

8. Mobile is the biggest opportunity infrastructure
MIDDLE EAST & NORTH AFRICA
35.8 million Registered Accounts
1.9 million Active Accounts
LATIN AMERICA & CARIBBEAN
17.3 million Registered Accounts
8.2 million Active Accounts
SOUTH ASIA
101.9 million Registered Accounts
27.2 million Active Accounts
EAST ASIA AND PACIFIC
26 million Registered Accounts
3.5 million Active Accounts
SUB-SAHARAN AFRICA
229 million Registered Accounts
84.1 million Active Accounts
EUROPE & CENTRAL ASIA
1.7 million Registered Accounts
0.2 million Active Accounts
271live mMoney
deployments 411million registered
mMoney accounts 52%increase in
IMT traffic 3.2 million access
points

9. What is an open payment network?
Universal accessMobile –first
Neutral processor
Open APIs
Shared utility
Standardization
Common scheme rules
Compliance with
regulation
Any instrument , any carrier
Risk controls
Uniformity in practices
Lower Capex and Opex
Transparency; collective empowerment
Immediate global reach ; lower integration costs

10. • Credit transfers
• Direct debit
• Mobile Wallet
• Credit /Debit card
• Bank account
• SWIFT
• ISO 20022
• GSMA
• RTGS
• Domestic ACH
…
• Branch
instructions
• Online
• Mobile
• ATM
• Retail
• Other FIs
• Government
• Outgoing payments
• Incoming payments
• Batch
• Single real-time
• Refund
• Rejection
• …
X X X X
Instrument type Standard/ scheme Channel Customer Transaction types
Customer
notification and
reconciliation
ExecutionAuthorisation
Clearing
preparation
Validation,
compliance
Instruction receipt,
payment object creation
and prioritisation
1 2 3 4 5 6
1
2
3
… delivered as a service
… with ability to customise workflow by any dimension of A or payment characteristics
… and with sophisticated monitoring and alerting capabilities
4 … reliably at large volumes and throughput
5 … with appropriate security, access control and audit trails
A
B
C
Ability to
manage, on a
single
platform,
any…
and deliver
core
payment
functionality
under key
conditions
Platform powering open network

11. Asks
 Regulatory support
 Licensing policies for hubs
 Promote market-wide domestic interoperability
 Open and collaborative mindset

12.  Payment
interoperability
 Economies od scale
and costs
 Fully compliant service
Open Network Benefits
Partners Customers Regulators
 Easy to access
 Lower costs
 Simple to use
 Instant payment 24x7
 Secure
 Earn forex
 Promote competition
 Deepen financial
inclusion
 Effective policy
decisioning

13. TerraPay Poster Text
Thank-you