Learning Objectives:

  • Understand the design and operation of retail payment systems.

  • Analyse the features of instant payment schemes.

  • Explore interoperability and open access in retail payments.

3.1 Retail Payment Instruments

The RUDN University syllabus covers “Retail payments. Credit and debit payment instruments: letter of credit, collection, payment orders, checks, bank cards” . The IBS programme covers “Electronic payment cards: debit, credit, prepaid, and multi-currency” .

Key Retail Instruments:

  • Cards: Credit, debit, and prepaid cards for point-of-sale and online transactions.

  • Direct Debits: Authorised withdrawals from customer accounts.

  • Credit Transfers: Electronic transfers initiated by the payer.

  • E-Money: Digital value stored electronically.

  • QR Payments: Quick-response codes for payment initiation.

  • Mobile Money Services: Digital wallets and mobile-based payment services.

3.2 Instant Payment Systems

The Uphilos Consultancy course covers “Analyze the design of fast payment schemes and their integration into national digital payments infrastructure” . The GIFT IFI curriculum includes “UPI Architecture and Transaction Flow” and “RTGS, NEFT, and IMPS Mechanisms” .

Key Features of Instant Payments:

  • 24/7/365 Availability: Real-time processing at all times.

  • Finality: Immediate settlement is final and irrevocable.

  • Liquidity: Participants must maintain sufficient balances or have access to intraday credit.

Major Instant Payment Systems:

  • UPI (India): India’s real-time payment system that has become the dominant payment method.

  • FedNow (United States): The Federal Reserve’s instant payment service, launched to enable 24/7/365 fund transfers.

  • SEPA Instant Credit Transfer (Europe): Enables instant euro payments across participating European countries.

  • Pix (Brazil): Brazil’s instant payment system.

  • Faster Payments (UK): The UK’s instant payment system.

3.3 Interoperability and Open Access

The Uphilos Consultancy course covers “Explore how shared rails, APIs, and scheme rules promote competition and innovation” . Interoperability allows different payment systems and providers to work together seamlessly.

Key Interoperability Features:

  • Shared Payment Rails: Infrastructure that multiple providers can access.

  • APIs: Enable integration between different systems and providers.

  • Scheme Rules: Standardized rules that govern participation and transaction processing.

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