The Fed is getting into the Real-Time payments business • Hacker News Board

Re: The Fed is getting into the Real-Time payments business

#51

Post by obtino » Tue, Aug 06, 2019, 5:54 AM UTC

ggm wrote: post #43

natal60 wrote: post #27

Earlier quoted context omitted.

NPP is a joke. There's a limit of $1,000 for transfers. It doesn't always work if you don't use a PayID. Compare that to Faster Payments which easily works with 250k with or without a PayID

If you regularly need to move 250k sums electronically inside the Australian economy, using this kind of mechanism, I'd love to know what you're doing. Only because I am nosy: I cannot conceive of transactions on this level which demand NPP class behaviour.

> If you regularly need to move 250k sums electronically inside the Australian economy.

Paying sub-contractors, settling property transactions, the list goes on.

When buying a house, I remember having to withdraw $60k in cash from my savings bank account and walking over and depositing it in another because it would take the other bank 3 working days to clear a bank-cheque. Some banks do offer an over-night inter-bank mechanism, but surprisingly CommBank does not.

Re: The Fed is getting into the Real-Time payments business

#52

Post by shamir » Tue, Aug 06, 2019, 6:03 AM UTC

daeroth wrote: post #2

Some real-time payment infrastructures to compare to: UK - Faster Payments Service (2008) https://en.wikipedia.org/wiki/Faster_Payments_Service EU - SEPA Instant Credit (2017) https://en.wikipedia.org/wiki/Single_Euro_Payments_Area#SEPA... Australia - New Payments Platform (2018) https://en.wikipedia.org/wiki/New_Payments_Platform

Don't forget the best of them all India - UPI (2016) https://www.npci.org.in/product-overview/upi-product-overvie...

Re: The Fed is getting into the Real-Time payments business

#53

Post by kevas » Tue, Aug 06, 2019, 6:21 AM UTC

stephen_g wrote: post #41

kevas wrote: post #14

How does effect Visa & MasterCard

Coming from a country that has had a modern payments system like this for a while - you generally still use a credit card for anything online or at stores, in an Uber or taxis, but use the real time bank payment system for paying invoices and bills, or buying a car from somebody, or sending $12 to your friend in real time because he paid for your lunch etc.

Why? Why opt for two when one, I presume, is sponsored by the gov and accepted everywhere in your country?

Re: The Fed is getting into the Real-Time payments business

#54

Post by incompatible » Tue, Aug 06, 2019, 6:42 AM UTC

wmf wrote: post #33

incompatible wrote: post #32

Earlier quoted context omitted.

When will Libra go live? The Fed system will "aim to launch in 2023 or 2024".

It kind of looks like Congress is going to delay Libra until Facebook gives up.

Does Facebook need permission from Congress to launch?

Re: The Fed is getting into the Real-Time payments business

#55

Post by asutekku » Tue, Aug 06, 2019, 7:15 AM UTC

kevas wrote: post #53

stephen_g wrote: post #41

Earlier quoted context omitted.

Coming from a country that has had a modern payments system like this for a while - you generally still use a credit card for anything online or at stores, in an Uber or taxis, but use the real time bank payment system for paying invoices and bills, or buying a car from somebody, or sending $12 to your friend in real time because he paid for your lunch etc.

Why? Why opt for two when one, I presume, is sponsored by the gov and accepted everywhere in your country?

What do you mean? There’s usually no way to pay without credit card / debit card / cash in most countries. Contactless payments are still not as popular as they could be.

Re: The Fed is getting into the Real-Time payments business

#56

Post by LowLevelHacker » Tue, Aug 06, 2019, 7:17 AM UTC

kevas wrote: post #53

stephen_g wrote: post #41

Earlier quoted context omitted.

Coming from a country that has had a modern payments system like this for a while - you generally still use a credit card for anything online or at stores, in an Uber or taxis, but use the real time bank payment system for paying invoices and bills, or buying a car from somebody, or sending $12 to your friend in real time because he paid for your lunch etc.

Why? Why opt for two when one, I presume, is sponsored by the gov and accepted everywhere in your country?

Fees

Re: The Fed is getting into the Real-Time payments business

#57

Post by Double_a_92 » Tue, Aug 06, 2019, 7:54 AM UTC

vinay427 wrote: post #4

I'm still hoping for something similar where I currently live, here in Switzerland (not in the EU). Payments generally arrive the next business day but that isn't good enough for most in-person transactions.

For in-person transations Twint seems to be the established service.

Re: The Fed is getting into the Real-Time payments business

#58

Post by Double_a_92 » Tue, Aug 06, 2019, 7:57 AM UTC

adventured wrote: post #13

vinay427 wrote: post #4

I'm still hoping for something similar where I currently live, here in Switzerland (not in the EU). Payments generally arrive the next business day but that isn't good enough for most in-person transactions.

Is Switzerland working on something along those lines now? I'm surprised, given the outsized Swiss position in global banking, that they're not among the leaders on this front.

Swiss banks are not leaders on anything now... They are just expensive. I pay 10 swiss francs per month to have an account and card there. And they still want 5 more so I can make more than 10 transactions a month (which I want since I started paying contactless in shops). And there aren't really any good alternatives, any bank is like that.

Re: The Fed is getting into the Real-Time payments business

#59

Post by Double_a_92 » Tue, Aug 06, 2019, 8:00 AM UTC

trazire wrote: post #19

adventured wrote: post #13

Earlier quoted context omitted.

Is Switzerland working on something along those lines now? I'm surprised, given the outsized Swiss position in global banking, that they're not among the leaders on this front.

Switzerland has access to SEPA, I believe, as a member of the European Free Trade Association. I don't think it's widely accepted.

That just works with € transactions, and it's still not instant. But yeah every ebanking software offers SEPA transactions.

Re: The Fed is getting into the Real-Time payments business

#60

Post by JauntyHatAngle » Tue, Aug 06, 2019, 8:36 AM UTC

natal60 wrote: post #27

aussiegeek wrote: post #22

Earlier quoted context omitted.

NPP is on it's way to being really handy, but it still sucks that I have to hack things to force NPP for some payments (ie. CommBank will only use NPP for PayID payments, but banks like Up will use NPP for transfers for a BSB/Account number if the receiving banks supports it, not all banks are fully on the platform yet) The downside is my teenagers can now shake me down for cash remotely

NPP is a joke. There's a limit of $1,000 for transfers. It doesn't always work if you don't use a PayID. Compare that to Faster Payments which easily works with 250k with or without a PayID

I'm fairly sure this is to ease it into use. I would assume that as it becomes more ubiquitous (many banks don't even have it yet) the limit will increase.