Funny, when you retire you are supposed to …
The problem is that your brain doesn’t stop or completely forget what you have been doing for the last 40 years. Particularly if you are a builder or project oriented person.
Whenever I review this solution with someone the standard question is always “Why hasn’t anyone figured this out already ?” Well, that is because no one has thought that GIG Payments require or benefit from an independent payment infrastructure. They believe that the existing core platforms have the key elements as do the up-and-coming ISO 20022 Real-Time payment rails. They don't.
Other factors in the equation are that 1. they are limited by their own understanding of how interbank payment clearing currently operates, 2. they don't have the time or budgets, and 3. they don't have enough experience or put in enough effort to address all the stakeholders. Stand-alone solutions such as Paypal, ApplePay, GooglePay, and AliPay haven't bothered either as they take the instant route to revenue by sitting on top of the existing infrastructure.
So, when you have figured out a way to “revolutionize payments”, and you have some time and experience, you do a lot of homework. This homework builds either paths or walls. Both are critically important to a clean solution and ultimately success.
After sorting out the general concepts and completing descriptive documentation including many diagrams, it becomes time to work out the business plan. Market opportunity by the numbers and understanding the competitive market is a necessary effort. I took the task to heart looking into anything and everything related to real-time GIG payments as they are evolving in N.A., Europe, Australia, and China.
I listened to many Podcasts, watched many Youtube videos, and of course hit the readable materials very hard, which is the only place to source legitimate market numbers. While I do not think that I have a fully completed list below, here is a list of most of the reading references that I have been compiling over the last 2 years. Please use it yourself if you want to “revolutionize payments”. They are in no particular order.
1. Developing a Vision for the Canadian Payment Ecosystem, APRIL 20, 2016, Payments Canada
2. Modernizing Canadian Payments: A vision for the Canadian Payments Ecosystem – Companion Reader, April 2016, Payments Canada
3. 2017 Canadian Payment Methods and Trends, Payments Canada Discussion Paper No. 8 – December 2017, Payments Canada
4. Money in Motion: Modernizing Canada’s Payment System, Commentary No. 432, C.D. Howe Institute, Aug 2015, John Chant
5. Canadian Payments Association Discussion Paper No. 2 – September 2015, Public Policy Objectives and the Next Generation of CPA Systems: An Analytical Framework
James Chapman, Sajjad Jafri, CPA Research Unit
Jonathan Chiu, Hector Perez Saiz, Bank of Canada
6. Principles of a Modernized Payments System: Insights on the future of faster payments, Interac Association/Acxsys Corporation, March 2017
7. Examining Canadian Payment Methods and Trends, October 2012, Canadian Payments Association
8. New Payment Methods: Is Canada Ready? - Final Report of the Research Project Presented to Industry Canada’s Office of Consumer Affairs, June 2011
9. Task Force for the Payments System Review, - including sections – 2. Payments Overview: C. The Canadian Payments System Regulatory Framework,
3. Review of Payment Methods, and 4. Review of Participants in the Payments Ecosystem, prepared by Deloitte in 2016
10. How Canadians Bank, Canadian Bankers Association, 2016
11. U.S. Real-Time Payments Business Playbook, Version 1.03, The Clearinghouse, March 2016
12. Real-time payments are changing the reality of payments, Deloitte, 2015
13. Payment, clearing and settlement systems in the United States, CPSS – Red Book – 2012
14. Payment systems in the United States, CPSS - Red Book – 2003
15. Banking Fees in Canada: Patterns and Trends, Charles Gibney, Sami Bibi and Bruno Lévesque - Research Division, Financial Consumer Agency of Canada,
June 2014
16. Federal Reserve Board Check Volume Statistics 1989 to 2015 – as resourced online at https://www.federalreserve.gov/
17. Request For Payment: a user-centered service concept, December 2016, Faster Payments Inc
18. Economics of Request for Payment, Prepared for Faster Payments Scheme Ltd by Accenture, Accenture Strategy, Faster Payments, 2017
19. International Research & Benchmarking Survey Results - Core Systems – Canadian Payments Association, Feb 2009
20. International Benchmarking Survey Results - Governance, Funding & Membership - Canadian Payments Association, Feb 2009
21. Environmental Scan - International Interoperability Standards -
Canadian Payments Association, Feb 2009
22. Moving Money 2025: The future of payments and what it means to you - Expert opinions on innovation in the UK, Vocalink
23. Criteria and Risk-Management Standards for Prominent Payment Systems, Bank of Canada, 2012
24. Canadian Payments Association Discussion Paper No. 3 – November 2015
The economic benefit of adopting the ISO 20022 payment message standard in Canada, Neville Arjani, CPA Research Unit
25. Canadian Payments Association Discussion Paper No.1 – July 2015
The Role of Automated Funds Transfer Payments in Canada’s Declining Use of Cheques, Michael Tompkins, Sajjad Jafri and Neville Arjani CPA Research Unit
26. Business Guide to Cheques, Canadian Payments Association, 2015
27. Paying by Pre-Authorized Debit: How Pads Work, Canadian Payments Association, www.cdnpay.ca.
28. RBC Corporate Creditor Bill Payment Service Client Guide, RBC Royal Bank,
Last Updated: August 2014
29. In Touch With e-Consumer Protection?, Conference Report, Nov 4, 2015, Consumers Council of Canada
30. Stuck in the Middle: Consumers, Transaction Fees and Loyalty Programs, Consumers Council of Canada, 2015
31. A Guide to Risk in Payment Systems Owned and Operated By the CPA, Canadian Payments Association, July 2015
32. Personal Information Protection and Electronic Documents Act, S.C. 2000, c. 5, Current to November 21, 2016 Last amended on June 23, 2015
Published by the Minister of Justice at the following address: http://laws-lois.justice.gc.ca
33. Canadian Payments Act R.S.C., 1985, c. C-21, Current to November 21, 2016 Last amended on June 22, 2016
Published by the Minister of Justice at the following address: http://laws-lois.justice.gc.ca
34. Principles of Payments Industry Self-Governance: International Council of Payment Association Chief Executives, November 2007
35. various Annual Reports of the major Canadian domestic banks – Scotiabank, Royal Bank, BMO, TD Bank, CIBC, National Bank
36. various Business and Retail Banking Fee Schedules of the major Canadian domestic banks – Scotiabank, Royal Bank, BMO, CIBC
37. various Account Agreements of some major Canadian and U.S. banks and other 3rd party payments participants – Royal Bank, BMO, CIBC, HSBC, JP Morgan, Bank of America, The Peoples Bank of Arlington Heights, Paypal, Intuit
38. Improving Online Agreements: “It’s Not Rocket Science!”, Consumers Council of Canada, 2015
39. Money Laundering Using New Payment Methods, FATF Report, October 2010
40. FOLLOW THE MONEY: IS CANADA MAKING PROGRESS IN COMBATTING MONEY LAUNDERING AND TERRORIST FINANCING? NOT REALLY, Report of the
Standing Senate Committee on Banking, Trade and Commerce, March 2013
The Honourable Irving R. Gerstein, C.M., O. Ont, Chair
The Honourable Céline Hervieux-Payette, P.C., Deputy Chair
41. Report on Money Laundering Typologies 2003 – 2004, Financial Action Task Force on Money Laundering
42. AML Rule Tuning: Applying Statistical and Risk-Based Approach to Achieve Higher Alert Efficiency, ACAMS, Umberto Lucchetti Junior, CAMS-FCI, (date of paper not provided but referenced documents identify circa 2015)
43. Proceeds of Crime (Money Laundering) and Terrorist Financing Act,
S.C. 2000, c. 17, Current to December 22, 2015 Last amended on June 23, 2015
Published by the Minister of Justice at the following address: http://laws-lois.justice.gc.ca
44. Update to 43. - Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations, SOR/2002-184, Current to December 8, 2016 Last amended on June 30, 2016
Published by the Minister of Justice at the following address: http://laws-lois.justice.gc.ca
45. Guideline 2: Suspicious Transactions, Rev. 2016-06, Financial Transactions and Reports Analysis Centre of Canada, July 2016
46. Anti-money laundering and counter-terrorist Financing measures
Canada, Mutual Evaluation Report, FATF, September 2016
47. Anti-money laundering and counter-terrorist Financing measures
United States, Mutual Evaluation Report, FATF, December 2016
48. FATF REPORT; Emerging Terrorist Financing Risks, October 2015
49. Methodology: FOR ASSESSING TECHNICAL COMPLIANCE WITH THE FATF RECOMMENDATIONS AND THE EFFECTIVENESS OF AML/CFT SYSTEMS, FATF, February 2013
50. INTERNATIONAL STANDARDSON COMBATING MONEY LAUNDERING AND THE FINANCING OFTERRORISM & PROLIFERATION, The FATF Recommendations,
February 2012
51. FATF Report: Operational Issues Financial Investigations Guidance, June 2012
52. FATF Report: Virtual Currencies Key Definitions and Potential AML/CFT Risks, June 2014
53. FATF Report: The Role of HAWALA and other similar service providers in money laundering and terrorist financing, October 2013
54. A temporary phenomenon? - Marketplace lending - An analysis of the UK market, Deloitte, 2016
55. A Primer on Credit Risk in Payment Canada’s Automated Clearing Settlement System (ACSS), Payments Canada Discussion Paper No. 6 – August 2016
56. The economic benefit of adopting the ISO 20022 payment message standard in Canada, Canadian Payments Association Discussion Paper No. 3 – November 2015
Canadian Payments Association, Nevelle Argani, CPA Research Unit
57. END2END ISO 20022 Message Flow, Payments Canada, September 2017
58. Electronic Funds Transfer User Guide, BMO Financial Group, Nov 30 , 2011
59. ISO 20022 – Overview, Nicole Jolliffe, SWIFT Services Australia 7th February, 2017
60. The Inefficiencies of Cross-Border Payments: How Current Forces Are Shaping the Future, Visa International, Written by Yoon S. Park, PHD & DBA, George Washington University, 2006
61. Effective screening controls for sanctions and AML risk manage, Ernst & Young Global Limited, 2016
62. U.S. Real-Time Payments Operations Playbook, Version 1.01, The Clearinghouse, May 2016
63. U.S. Real-Time Payments Technology Playbook, Version 1.0, The Clearinghouse, Nov 2016
64. Effective screening controls for sanctions and AML risk management, Hamish Thomas, Debbie Ward, Richard Elliot-Cooke, Scott Sarsam – Financial Crime, Ernst & Young, 2016
65. FinTech in Canada – Towards Leading the Global Financial Technology Transition © 2016, Digital Finance Institute; McCarthy Tétrault LLP
66. Supporting Responsible Innovation in the Federal Banking System: An OCC Perspective, March 2016
67. Federal Reserve: Faster Payments Task Force - Final Report Part 1: The Faster Payments Task Force Approach, January 2017 - Part 1
68. Federal Reserve: The U.S. Path to Faster Payments - - Final Report Part 2: Call to Action, July 2017 - Part 2
69. Faster Payments: Market Structure and Policy Considerations, Finance and Economics Discussion Series Divisions of Research & Statistics and Monetary Affairs
Federal Reserve Board, Washington, D.C., Sept 21, 2017
70. A New Retail Payments Oversight Framework – Invitation for Comments: Department of Finance Canada, October 6, 2017
71. Payments Canada Commentary: A New Retail Payments Oversight Framework, October 13, 2017
72. Costs and Benefits of Building Faster Payment Systems: The U.K. Experience and Implications for the United States, Claire Greene, Marc Rysman, Scott Schuh, Oz Shy, Feb 2015,
73. New Revenue Recognition Rules - How will they affect loyalty programs?, Price Waterhouse Coopers, Brian Jones, Brett Cohen, John, Kryczka, Martin Menard, Simon Whitehead, 2016
74. Applying IFRS in Retail and Consumer Products - The new revenue recognition standard – retail and consumer products, Ernst & Young, May 2015
75. Essentials of Treasury Management – First Edition, Association for Financial Professionals, 2004
76. Distributed Ledger technology in payment, clearing, and Settlement: An analytical framework, Bank for International Settlements - Committee on Payments and Market Infrastructures, Feb 2017
77. Whitepaper: Realizing the Potential of Blockchain –A Multistakeholder Approach to the Stewardship of blockchain and Cryptocurrencies, World Economic Forum, June 2017
78. Distributed ledger technology in payments, clearing, and settlement – Finance and Economics Discussion Series, Divisions of Research & Statistics and Monetary Affairs, Federal Reserve Board, Washington, D.C., David Mills, Kathy Wong, et. al., 2016-095
79. Revenue from Contracts with Customers – A guide to IFRS 15, Deloitte, March 2018
80. IFRS in Focus – Disclosing the adoption of new accounting standards in interim financial statements, Deloitte, May 2018
81. Making sense of a complex world – IFRIC 13 – Customer loyalty programmes, Telecommunications Industry Accounting Group, Price Waterhouse Coopers, 2009
82. Mobile Payments and Consumer Protection in Canada, Steve Trites, Charles Gibney and Bruno Lévesque Research Division, Financial Consumer Agency of Canada, December 2013
83. Supporting a Strong and Growing Economy: Positioning Canada’s Financial Sector for the Future: A Consultation Document for the Review of the Federal Financial Sector Framework, Department of Finance Canada, August 26, 2016.
84. Canadian Banks 2017, #Bankovation… Innovation. Modernization. ReInvention. Perspectives on the Canadian banking industry, PWC
85. Payment Tokens - Discussing what a payment token, its role in the crypto market, and why it’s so important for the industry, CoinBundle, Nov 13, 2018
86. How to trust the machine: using AI to combat money laundering, E&Y, By Patrick Craig, EY EMEIA Financial Crime Technology Lead, 20 May 2018. https://www.ey.com/en_gl/trust/how-to-trust-the-machine--using-ai-to-combat-money-laundering
87. Joint Statement on Innovative Efforts to Combat Money Laundering and Terrorist Financing, Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, Financial Crimes Enforcement Network, National Credit Union Administration, Office of the Comptroller of the Currency, December 3, 2018
88. Federal Agencies Issue a Joint Statement on Banks and Credit Unions Sharing Resources to Improve Efficiency and Effectiveness of Bank Secrecy Act Compliance, Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, Financial Crimes Enforcement Network, National Credit Union Administration, Office of the Comptroller of the Currency, October 3, 2018
89. TARGET Instant Payment Settlement User Requirements, Verson 1.0.0 Final, European Central Bank, June 21, 2017
90. Making ISO 20022 work for Canadian corporations, Kate Risch Choi, Payments Business, Sept/Oct 2017
91. CONSULTATION DOCUMENT - A Review into the
Merits of Open Banking, Department of Finance Canada, January 2019
92. The cloud imperative – How banks can improve business agility through cloud-powered transformation, Deloitte, Oct 2019
93. Clearing and Settlement Systems from Around the World: A Qualitative Analysis, Payments Canada Discussion Paper No. 5 – June 2016 Michael Tompkins, Payments Canada Research Unit, and Ariel Olivares, Bank of Canada
94. How can payments modernization benefit Canadian businesses? Evaluating the cost of payments processing, Payments Canada and E&Y, 2018
95. Visa International 2018 Annual Report
96. MasterCard 2018 Annual Report
97. 2018 Canadian Payment Methods and Trends, December 2018, Payments Canada
98. API USAGE EXPANDS IN CORPORATE BANKING AND PAYMENTS, Steve Murphy,
Director, Commercial and Enterprise Payments Advisory Service, Mercator Advisory Group, March 2018
99. TOP 10 BANKING TRENDS FOR 2019 - A Potential Tipping Point, Accenture
100. Open banking is coming – Canadian Banks 2019, PWC, Jennifer Johnson, Diane Kazarian
101. Payments 2022 – How platforms will use payments to transfor global economies, stripe & PYMNTS.COM. whitepaper. April 2019
102. Closing the gap in fintech collaboration Overcoming obstacles to a symbiotic relationship – Deloitte Center for Financial Services, 2018
103. Building a More Trustworthy eCommerce Marketplace, Digital Fraud Tracker, PYMTS.COM, October 2019
104. Creating an open banking framework for Canada Considerations and implications of key design choices, Deloitte, 2019
105. The Costs of Point-of-Sale Payments in Canada, Bank of Canada Staff Discussion Paper 2017-4, March 2017
106. 2019 Canadian Payment Methods and Trends, December 2019, Payments Canada
107. The Global GIG Economy: Capitalizing on a ~$500B Opportunity, Mastercard GIG Economy Industry Outlook and Needs Assessment by Mastercard and Kaiser Associates, May 2019
108. Five reasons to innovate payments the open source way, Red Hat, Sept 2018
109. GIG Economy Tracker, PYMNTS.COM – tipalti, March 2020
110. The Future of Bank Risk Management, McKinsey & Company, Harle, Havas, Kremer, Rona, Samandari, Dec 2015
111. Paypal/s Plan for Seamless, Touch-Free QR Code Commerce, Pymts.com, July 31, 2020
112. The FI’s Guide to Modernizing Digital Payments, Red Hat/Pymnts.com, Aug/Sept 2020
113. Digital Banks and the Power of the Cloud Tracker, Pymnts.com, Aug 2020
114. How Applepay Works Under the Hood, Codeburst.io, Prashant Ram , Nov 5, 2019
115. Pay Faster Invest Better, B2BAPI Tracker, Redhat/Pymnts.com Ma 2020
116. Mastercard bids to bypass own rails with Pay by Bank app promotion, finextra.com, Dec 5, 2018
117. Protecting Against Fraud – How to Spot and Prevent Fraud Schemes, NACHA, 2018
118. Watching the Evolution of Australia’s NPP, Payments Journal, Sarah Grotta, Aug 26, 2019
119. Banking is a flash: A guide to the New Payments Platform (NPP), Mozo.com, Dec 2019
120. Why Real-Time payments are the new normal – and how payment providers can adapt, EY Global, 2019
121. Just Tap to Pay – Contactless Payments, How We Will Pay Series, VISA/Pymnts.com, 2019
122. Mastercard: How Payment On Delivery, Request To Pay Will Ignite Real Time Payments, Pymnts.com, Oct 23, 2019
123. Digital Fraud Tracker, Pymnts.com, Oct 2019
124. Payments Modernization – Corporate payments end-user needs report, Canadian Bankers Association (CBA)/Deloitte
125. A Payments Strategy for the 21st Century – Putting the needs of users first, Payment Strategy Forum, Nov 2016
126. Trusted KYC Data Sharing – Framework Implementation (Handover Document), Payments Strategy Forum, Nov 2017
127. A vision for the future of cross-border payments, SWIFT/McKinsey & Company, Oct 2018
128. How Cross-Border Payments Work in ecommerce, Bluesnap, Manny Pansa, June 2018
129. Beneficiary Change Request: Risk and Best Practices, Treasury and Trade Solutions, Citibank, 2018
130. Faster Payments Effectiveness Criteria, Faster Payments Task Force, Federal Reserve Banks, Jan 26, 2016
131. Powerful KYC/AML screening & workflow management, Bloomberg, 2017
132. Eliminating Paper Paychecks: Best Practices for Implementing a Successful, Compliant Electronic Payroll Distribution Program, First Data, 2013
133. Understanding ISO 20022: A Resource Guide for Financial Institutions, Corporations, and the Public, ISO 20022 Education and Promotion Work Group of the Remittance Coalition’s Vendor Forum (document has many links to many other docs, videos, and resource sites on the topic of ISO 20022)
134. Measuring the Gig Economy in Canada Using Administrative Data by Sung-Hee Jeon, Huju Liu and Yuri Ostrovsky, Dec 16, 2019
135. The Size and Characteristics of Informal (“Gig”) Work in Canada, Staff Analytical Note/Note analytique du personnel 2019-6, Olena Kostyshyna and Corinne Luu, Bank of Canada, 2019
136. GIG Economy, A quarterly Report about the INs and OUTs of the GIG Economy, Hyperwallet Paypal/Pymnts.com, Apr 2019
137. Global Payments Report 2019: Amid sustained growth, accelerating challenges demand bold actions , Global Banking Practice, McKinsey & Company, Sept 2019
138. PayThink For true 'real-time' payments, banks must be involved, PaymentsSource.com, Jack Baldwin July 17, 2019
139. Real- Time Payments Implementation Considerations for Financial Institutions, Level, Authors: Phil Mork & Greg Lloyd, 2019
140. in progress
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