19
Debit Order Landscape 1 DEBIT ORDER LANDSCAPE 2018 Nov 2018
Debit Order Landscape 1
DEBIT ORDER LANDSCAPE2018
Nov 2018
Debit Order Landscape 2
PROGRAMME
DebiCheck5
Debit Order Abuse Project6
Questions7
SA Payments Landscape 1
Who is PASA 2
The debit order landscape 3
Debit Order Landscape 3
SA PAYMENTS LANDSCAPE
Debit Order Landscape 4
THE SOUTH AFRICAN NPS
Retail9%
High Value91%
Retail High Value
R118.1 Trillion settled through RTGS
annually
The NPS
RTC0.4%
EFT Credit14.5%
EFT Debit11.5%
AEDO0.4%
NAEDO4.3%
ATM12.5%Cheque
0.2%
Card56.2%
RTC2.4%
EFT Debit7.0%
AEDO1.3%
EFT Credit79.0%
NAEDO0.1%
ATM1.1%
Cheque1.7%
Card7.3%
Annual Retail
Volumes
Annual RetailValues
95% Settled during Day
5% Settled during Night window
Debit Order Landscape 5
WHO IS PASA?
Debit Order Landscape 6
PASA AND THE SOUTH AFRICAN PAYMENTS LANDSCAPE
• Recognised and overseen by the SARB NPSD
• Comprised of Members
• Governed by PASA Council
• Supported by an EXO (Executive Office)
• Managed through its structures, processes and values
MAINTAIN SAFE AND
EFFICIENT NPS
“INFRASTRUCTURE”
STIMULATE,
ENCOURAGE AND
FACILITATE THE
DEVELOPMENT OF NEW
“INFRASTRUCTURE”
PROTECT A
CRITICAL “COMMON”
PUBLIC ASSET
SIMPLY PUT, PASA’S ROLE IS TO:
Debit Order Landscape 7
PASA AND THE SOUTH AFRICAN PAYMENTS LANDSCAPE
TPPPs220
Members33
PSOs4
SOs100
PASA exists to
facilitate the
circulation of
money in the
interest of
economic
development of
South Africa
PASA aspires to
be acknowledged
as world class, in
assisting in the
evolution and
oversight of the
payments
industry
PASA exists to
manage and
develop the NPS
and facilitate
integration with
international
payments
PURPOSE VISION MISSION
Debit Order Landscape 8
THE DEBIT ORDER LANDSCAPE
Debit Order Landscape 9
THE FOUR-PARTY MODEL
SPONSORING BANK
PAYING BANK
User(Insurance/micro
lender etc.)Consumer
Mandate
Paper or Voice
Debit Order Landscape 10
DEBIT ORDERS IN NUMBERS – MONTHLY AVERAGE, AS AT June 2018
*AEDO – Authenticated Early Debit Orders*NAEDO – Non-Authenticated Early Debit Orders*EFT – Electronic Funds Transfer
AEDO NAEDO
17% 29.1% 9.3%DisputesUnsuccessful
2.01 million volume R2.1 billion value
16 million volumeR13.8 billion value
NAEDO Disputes June 2017 to 2018
(YoY growth of 37% in June 2018)
Unsuccessful Disputes
0%
EFT Disputes significantly lower and
not growing as fast
EFT’S
9.7%
36.6 million volume R66 billion value
Unsuccessful Disputes
1.6%
Debit Order Landscape 11
THE JOURNEY TO A BETTER FUTURE
Growing debit order abuse
from consumers and users
03
0201
06
04
05
Initial reduction measures• Allowing consumers to directly
dispute with their bank
• Abbreviated short name
• Minimum criteria for mandates
• Debit Order Review list
• Debit Order Abuse list
• Non-compliance fines
Debit Order Abuse Project
Enhanced debit order
landscape
Modernising the
payments landscape
Debit Order Landscape 12
DEBICHECK
Debit Order Landscape 13
THE FOUR-PARTY MODEL
SPONSORINGBANK
PAYING BANK
User(Insurance/micro
lender etc.)Consumer
Electronic
Mandate
Paper or Voice
Debit Order Landscape 14
TYPES OF DEBIT ORDERS AND DEBICHECK
Current Interim Future
Earl
y P
rocessin
g
Win
dow
Late
r Pro
cessin
g
Win
dow
Authenticated Debit
Orders (AEDO)
Non Authenticated
Debit Orders (NAEDO)
Authenticated Debit Orders
(AEDO)
Non Authenticated Debit
Orders (NAEDO)
Authenticated Debit Orders
(DebiCheck)
Authenticated Debit
Orders
EFT Debit Orders EFT Debit Orders
Non Authenticated Debit
Orders
(EFT Debit Orders)
?
Authenticated Collections project
Debit Order Landscape 15
DEBICHECK – MAKING HISTORY
1
SETTING THE TREND
First country to introduce consumer authentication in the early debit order space
4
DEALING WITH COMPLEXITY
Touches all Banks’ core banking platforms, not just
payments engines
6
LARGE INVESTMENT
Significant investment in resources and technology
3COLLABORATION
MILESTONE
First industry project to have non PASA-members on
project structures
5
NEW TECHNOLOGIES
Introduction of ISO standards (ISO20022)
7BUILDING FOR THE FUTURE
Project has set the industry up for further payments
modernisation
2
CREATING A NAME
First time creating an industry name for a product
Debit Order Landscape 16
PROJECT TIMELINES
TECHNICAL SCOPING, DEVELOPMENT & TESTINGBuilding & integrating new systems
TECHNICAL STABILISATIONEnsuring systems are working &
stable
MIGRATIONBanks and Users moving,
existing AEDO and NAEDO to DebiCheck system
1 Nov 2016 5 Feb 2018 31 Jul 2018 31 Oct 20193 Jul 2018
RAMP UPIncreasing volumes
Bringing on more Users
Only
DebiC
heck in e
arl
y
debit o
rder
win
dow
Debit Order Landscape 17
THE DEBIT ORDER ABUSE PROJECT
Debit Order Landscape 18
DEBIT ORDER ABUSE IMPLEMENTATION APPROACH
Enhance gatekeeping
roles
Entry and participation criteria to be
enhanced
Enhance analytics and
reporting
Enhanced abuser
database
Improved MIS to better
understand areas of abuse
Enhance investigation
and prosecution
Prosecution of rogue users
Understand & manage
consumer behavior
Processes to understand consumer behaviour
Revised debit order dispute
process.
Enhance public perception and
confidence
Optimise the media
Improved user and consumer
education
Develop a legal framework
Initiatives which
address all the
strategic
objectives
Initiatives which
address
individual
objectives.
Strategic
Objectives
Review the existing clearing rules
Enhance debit order abuse rules
Formal alignment process to migrate any changes to AC & MoP projects
