World of Payment
Payment Systems have evolved in different countries across the globe. Many countries now have multiple Payment Systems that fulfil the different needs of the consumers and business. Check out the Payment Systems in different countries/regions of the world either on a map or as a list.
Classification of Payment Systems
There are many ways to classify Payment Systems based on different parameters. Some of the classification is depicted below:
A short description of the different classifications is given below:
| Parameter | Classification | Details |
|---|---|---|
| Instrument Type | Cards | Cards are one of the most popular payment methods. Cards are mostly processed through separate networks run by the Card Networks |
| Mobile | Mobile as a payment instruments is used in mobile money platforms, inter-bank payments and P2P payments | |
| Traditional Inter-bank | Inter-bank payments can be initiated at the bank through any of the channels | |
| Settlement Amount | Gross | The amount for each payment/transaction is settled separately |
| Net | The net liability/dues for the participant is settled in each cycle | |
| Settlement Type | Real-Time | The settlement is done in real-time immediately on initiating the payment request |
| Deferred | The settlement is done in batches. cumulative for all the payments/transactions done in the batch/cycle | |
| Value (Amount) | High Value | Payments above threshold value. Differs country to country |
| Retail (Low Value) / Mass | Payments of any value are processed with no lower or upper limits (usually) | |
| Clearing Type | Single Instruction | Each instruction is separately cleared and settled |
| Batch | Multiple instructions are grouped together and processed in a batch process | |
| Payment Direction | Credit (Push) | Payment is initiated by the payer (debtor) and amount is pushed to the receiver/beneficiary |
| Debit (Pull) | Payment is initiated by the receiver/ beneficiary and amount is pulled from payer |
The same payment system can be used by different end-users for different purposes using different modes. A snapshot of this is captures below. Payment Processing involves multiple entities/personas right from the end-users to the intermediaries to the infrastructure providers and multiple activities, processes.
