There has been a blurring of definitions within the ACH and payment card landscape. Among the ACHs are the likes of Vocalink, SESP, STET, GSIT and RPS. Among the card processors are the likes of Visa and MasterCard themselves, plus American Express, Atos Worldwide, Experian, First Data, Sermepa, Sinsys and TSYS. Spanning both areas are entities such as Equens, NETS in the Nordic region, PBS, SIA-SSB in Italy and Telekurs Multipay.
There has been consolidation as national entities have sought to expand their geographical presence, take advantage of economies of scale and broaden their services. Tying much of the payments market together on the cross-border front has been Swift. Bank-owned and highly influential in the standards-making process, it has been highly successful over several decades but times are changing. A fall in 2009 of 2.4 percent in FIN traffic, largely stemming from the financial crisis, came as a shock to Swift.
The Society already looked to be in a rather more precarious position than in the past, with an increasing number of alternatives to its own network. The likes of BT Radianz and Travelex are gunning for Swift.
BT Radianz is an 'additional service specifically for the financial services sector that sits on top of BT's global physical platform', in the words of Chris Pickles, head of marketing, financial markets and wholesale banking at BT. 170 countries are covered by the BT network, while BT Radianz is available in about 64 of those. It competes head to head with Swift. Both provide secure messaging to Euroclear users, for instance. Out of 1700 member-firms of Euroclear, 1600 use BT, according to
Pickles. At the same time, Swift is also a client of BT. While the core part of the network in Belgium and America is managed by Swift, all the connections between Swift customers and that Swift network are managed by four different communications companies, one of which is BT. Over 1000 Swift users have BT to connect to Swift.
Swift's core business has traditionally been in servicing the cross-border payments industry. UK banks, for example, use Vocalink, not Swift, for their domestic payments. 'About 90 per cent of transactions, as a rule of thumb, are domestic,' so the market segment addressed by Swift is 'very, very small and is not sizeable in business terms', observed Pickles. Swift can point to some uptake for domestic traffic and intends to increase this, in part reflected in the decentralisation and 'go local' aspects of its current strategy.
Travelex is less established in this domain but has announced a service called Geo for Financial Institutions, which uses its existing payments network, with its links to local clearing houses around the world. Travelex's first taker is Rakuten, an online marketplace in Japan and one of the largest e-commerce companies in the world. It is using Geo to provide an international payments platform for its bank customers in Japan, integrating its online system with Geo on a white label basis.
There has been consolidation as national entities have sought to expand their geographical presence, take advantage of economies of scale and broaden their services. Tying much of the payments market together on the cross-border front has been Swift. Bank-owned and highly influential in the standards-making process, it has been highly successful over several decades but times are changing. A fall in 2009 of 2.4 percent in FIN traffic, largely stemming from the financial crisis, came as a shock to Swift.
The Society already looked to be in a rather more precarious position than in the past, with an increasing number of alternatives to its own network. The likes of BT Radianz and Travelex are gunning for Swift.
BT Radianz is an 'additional service specifically for the financial services sector that sits on top of BT's global physical platform', in the words of Chris Pickles, head of marketing, financial markets and wholesale banking at BT. 170 countries are covered by the BT network, while BT Radianz is available in about 64 of those. It competes head to head with Swift. Both provide secure messaging to Euroclear users, for instance. Out of 1700 member-firms of Euroclear, 1600 use BT, according to
Pickles. At the same time, Swift is also a client of BT. While the core part of the network in Belgium and America is managed by Swift, all the connections between Swift customers and that Swift network are managed by four different communications companies, one of which is BT. Over 1000 Swift users have BT to connect to Swift.
Swift's core business has traditionally been in servicing the cross-border payments industry. UK banks, for example, use Vocalink, not Swift, for their domestic payments. 'About 90 per cent of transactions, as a rule of thumb, are domestic,' so the market segment addressed by Swift is 'very, very small and is not sizeable in business terms', observed Pickles. Swift can point to some uptake for domestic traffic and intends to increase this, in part reflected in the decentralisation and 'go local' aspects of its current strategy.
Travelex is less established in this domain but has announced a service called Geo for Financial Institutions, which uses its existing payments network, with its links to local clearing houses around the world. Travelex's first taker is Rakuten, an online marketplace in Japan and one of the largest e-commerce companies in the world. It is using Geo to provide an international payments platform for its bank customers in Japan, integrating its online system with Geo on a white label basis.
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