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© SIA GROUP
Prepaid Summit: Europe 2016
Nicolo Romani , Head of Innovation Lab
Southern Europe Case Study - an outside Perspective
27th October 2016 | Milan, Italy
© SIA GROUP 2
Key Figures 2015
CARDS
3.9 billion operations 747,325 merchants managed 65.1 million credit, debit and prepaid cards
PAYMENTS
2.8 billion transactions 1,154 customers
INSTITUTIONAL SERVICES
41.7 billion financial transactions
over 100 brokers and traders in 18 countries adopting compliance & surveillance systems
350 million deal proposals handled daily (50,000 per second)
29 trading venues and over 580 customers connected to the Financial Ring
9.9 billion clearing transactions
Over 4,800 EBA STEP2 participants
CORPORATE INFORMATION
Employees (SIA Group): 1,612
Revenues (SIA Group): 449.4 million Euros
NETWORK
358.2 terabyte of data carried
100% availability
© SIA GROUP
Payment Industry is changing very fast
Disrupting Forces
Effective Customer experience;
Large Customer Base;
High innovation and investing capabilities;
Mobile Network Services
Connectivity
VAS Services Cloud, NFC,
M2M
Core Services (Advertising, eCommerce)
VAS Services (Cloud, wallet )
Internet Banking (Digital Bank)
Payment Network,
Issuing
VAS Services Reporting, Fidelity,
e-Wallet
Branches
REG
ULA
TOR
S
TEC
HN
OLO
GY
ASYMMETRIC COMPETITION
CONSUMERS
Banks need to offer secure, easy and user friendly
solutions on global scale to maintain their position.
Millennials
Open Innovation
PS
D2
3
© SIA GROUP
1. Missing revenues due to interchange fee reduction
2. Increase of the competition on acquiring side due to the entrance of new full digital players (GiC) War On GIC
(*) source: SIA aggregation of Bank of Italy data
Market Trends
Payment Industry is changing very fast
Why Jiffy
Italian Payment Market (*)
War On Cash
Payment instrument
Transactions (Mln)
%
Cash 14.686 81%
Cards 2.185 12%
Bank Transfer 1.192 7%
Total 18.063 100%
4
5
Jiffy Solution
P2X European Solution
Immediate debiting and crediting Beneficiary identified by a phone number Security (Enrolment and user authentication) provided by the Bank Based on current account (or card with IBAN) Settlement at cut off through SEPA Credit Transfer / SCTINST
5
6
European scenario for P2X
Player
All main
Swedish Banks 3 mio
Market share USERS
66% 2,5 mio
90% 2,5 mio
65 60
307
45-50
130
Jiffy, is the only one based on SEPA SCT;
ECB key guidelines:
Leveraging on SEPA infrastructures
Real time clearing and immediate funds availability
Deferred settlement acceptable with no liquidity risks
Interoperability
PSD II
Jiffy
© SIA GROUP
Jiffy Solution
Jiffy P2X – Multi Layer Solution
P2X Engine
Real time credit
-10 +10
# phone number amount
SCT
Euro
Sy
stem
Cle
arin
g A
pp
licat
ion
End customer product Brand
Pricing definition
APP (presentation layer)
VAS
Service Brand
Interoperability among users &
Banks
Interbank settlement
infrastructure
Bank Account Access
CSM
Interbank clearing
infrastructure
Sett
lem
ent
Jiff
y (
SIA
) B
ank
Syst
em
Ban
k P
rese
nta
tio
n la
yer
Directory Service > phone # - IBAN > messaging to Banks > net exposure calculation Collateral based on Volumes
7
8
• JIFFY P2P realtime money transfer among Individuals
• JIFFY P2B payments to Physical and Online stores, professionals,
and independent workers
• JIFFY P2G payments to Public Administration
Roadmap
4nd Quarter 2016 1st Q 2017
Jiffy P2G Launch with the first participating Public Administration
November 1st, 2014
Jiffy P2P Launch with the first
participating Bank
February 19th, 2016
Jiffy P2B Launch with the first
participating Bank
Brambilla Eugenio elettr.
Brambilla Giovanni idraul.
November 1st, 2015
Launch of the first Charity Initiative to donate with Jiffy
Hai ricevuto un avviso di pagamento da
Paga
Comune di Roma Ente
101,56€ Import
o
Mensa scolastica Causale
Esci
31/12/2015 DataScad.
Commiss. 1,23€
92738982652837 IUV
2016 2014 2015
Jiffy Roadmap
9
Jiffy P2B
Use Cases: Push and Pull mode
PULL
Customer Identification
• Phone number
• Loyalty card
• Proxy…
Transaction amount
(Money Request)
Payment acceptance
Customer Proxy
push notification
Payment verification
Merchant Selection
• Phone number
• QR Code
• Geolocalization
• Merchant name
Transaction
Amount (*)
PUSH Payment verification
Payment acceptance
1
2
3
1
2
10
Category Proxy Phone number
E-mail Name@ 335-12345678
Car plate 335-12345678
Loyalty card 335-12345678
Telegram ID 335-12345678
Facebook ID 335-12345678
Subscription code
335-12345678
Jiffy P2B
Focus on the Directory service: the Proxy DB
P2X
Proxy DB
Mobile phone number IBAN
335-12345678 XXX
YYY
The link Proxy – Payment Instrument in the P2X Directory Service is the key element to support new
payment scenarios
© SIA GROUP
-10 +10
Euro
Sy
stem
Cle
arin
g
Ap
plic
atio
n
11 S
ettl
emen
t
Jiff
y (S
IA)
Ban
k Sy
stem
B
ank
Pres
enta
tio
n
laye
r EB
A
Ser
vice
SIA
Data
cen
ter
Not
Real Tim
e
-Real time credit on
beneficiary account
-No more SCT
preparation
No liquidity risk
Pre-funding
Real Tim
e Performance Optimization, both Jiffy
and EBA are in the same SIA data center
Jiffy & Instant Payament
Integration with SCTINST EBA Clearing Platform
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