Committee on  
                                                                                                                                                                                                                                                                                                                                           Payments and Market 
                                                                                                                                                                                                                                                                                                                                           Infrastructures 
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                           Fast payments – 
                                                                                                                                                                                                                                                                                                                                           Enhancing the speed 
                                                                                                                                                                                                                                                                                                                                           and availability of retail 
                                                                                                                                                                                                                                                                                                                                           payments 
                                                                                                                                                                                                                                                                                                                                           November 2016 
                                                                                                                                                                                                                                                                                                                                            
                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                            
                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
                                                             
                                                                      
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
              
        This publication is available on the BIS website (www.bis.org). 
         
         
        ©  Bank for International Settlements 2016. All rights reserved.  Brief  excerpts may  be  reproduced or 
           translated provided the source is stated. 
         
         
        ISBN 978-92-9259-002-4 (print) 
        ISBN 978-92-9259-003-1 (online)  
                                                                      
         
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
                                                                                Contents 
                                                                                Acronyms and abbreviations ........................................................................................................................................................ iv 
                                                                                Executive summary ........................................................................................................................................................................... 1 
                                                                                1.                                        Introduction ...................................................................................................................................................................... 3 
                                                                                2.                                        Fast payments: Key definitions and concepts...................................................................................................... 6 
                                                                                                     2.1.                                     Definitions ................................................................................................................................................................. 6 
                                                                                                     2.2.                                     Important additional characteristics of fast payment implementations ........................................ 10 
                                                                                3.                                        The development of fast payments ....................................................................................................................... 19 
                                                                                                     3.1.                                     Fast payments in the context of the broader payment system ......................................................... 19 
                                                                                                     3.2.                                     Advances in information technology as a fundamental driver of fast payments ...................... 21 
                                                                                                     3.3.                                     Potential obstacles related to the implementation of fast payments ............................................ 25 
                                                                                                     3.4.                                     Forces related to the implementation of fast payments ...................................................................... 28 
                                                                                                     3.5.                                     The organisation of fast payments provision in a jurisdiction ........................................................... 31 
                                                                                4.                                        Clearing and settlement issues in fast payment systems ............................................................................. 33 
                                                                                                     4.1.                                     Fast payments processing models ................................................................................................................ 34 
                                                                                                     4.2.                                     Implications of different models of settlement for fast payments .................................................. 41 
                                                                                5.                                        Benefits and risks of fast payments ....................................................................................................................... 45 
                                                                                                     5.1.                                     Benefits of fast payments to different parties .......................................................................................... 45 
                                                                                                     5.2.                                     Impact of fast payments on risk .................................................................................................................... 47 
                                                                                6.                                        Issues related to fast payments ............................................................................................................................... 52 
                                                                                                     6.1.                                     Issues generally relevant for stakeholders and authorities ................................................................. 52 
                                                                                                     6.2.                                     Issues for central banks ..................................................................................................................................... 57 
                                                                                7.                                        Conclusions ..................................................................................................................................................................... 70 
                                                                                Annexes  .............................................................................................................................................................................................. 71 
                                                                                 
                                                                                                                                                                                                                                       
                                                                                CPMI – Fast payments – November 2016                                                                                                                                                                                                                                                                                                                                                                                                                                                        iii 
                                                                                 
                                                                                 
                                                                                
          
         Acronyms and abbreviations 
         24/7         24-hour and seven-day 
         AML          anti-money laundering 
         ATM          automated teller machine 
         B2B          business-to-business 
         B2P          business-to-person 
         CFT          countering/combating the financing of terrorism 
         CPMI         Committee on Payments and Market Infrastructures 
         CPSS         Committee on Payment and Settlement Systems (now CPMI) 
         DNS          deferred net settlement 
         e-money      electronic money 
         EU           European Union 
         FMI          financial market infrastructure 
         IOSCO        International Organization of Securities Commissions 
         ISO          International Organization for Standardization 
         IT           information technology 
         KYC          know your customer  
         P2B          person-to-business 
         P2G          person-to-government 
         P2P          person-to-person 
         PFMI         Principles for Financial Market Infrastructures 
         POS          point of sale 
         PSP          payment service provider 
         RTGS         real-time gross settlement 
         SEPA         Single Euro Payments Area 
                                                                                
         iv                                                CPMI – Fast payments – November 2016