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options to acHieVe a2a interoperiBility
the option to use a third party processor for bank transfers may be faster to market than direct to integration through banks to the
national acH or individual bilateral agreements with banks. However, it will add costs to each scheme-bank transaction that could signifi-
cantly affect the attractiveness to customers of this aspect of a2a interoperability.
the rules and interfaces, for an existing banking sector commercial processor, are not specifically designed to allow for e-money to
be cleared with bank account money, requiring new rules to be defined. For example, what would be the settlement process and tim-
ing for transactions?
as third party networks are closely tied into the banking systems, the changes necessary to the commercial processor network to allow
for this functionality are likely to require agreement with the banking sector and the central bank. this may add commercial risk (e.g.
cost) which slows down integration. transaction costs are also a potential barrier to the effectiveness and utilisation of the system, as
new costs will be introduced and likely passed to the end customer.
21
the option to use a third party processor for bank transfers may be faster to market than direct to integration through banks to the
national acH or individual bilateral agreements with banks. However, it will add costs to each scheme-bank transaction that could signifi-
cantly affect the attractiveness to customers of this aspect of a2a interoperability.
the rules and interfaces, for an existing banking sector commercial processor, are not specifically designed to allow for e-money to
be cleared with bank account money, requiring new rules to be defined. For example, what would be the settlement process and tim-
ing for transactions?
as third party networks are closely tied into the banking systems, the changes necessary to the commercial processor network to allow
for this functionality are likely to require agreement with the banking sector and the central bank. this may add commercial risk (e.g.
cost) which slows down integration. transaction costs are also a potential barrier to the effectiveness and utilisation of the system, as
new costs will be introduced and likely passed to the end customer.
21
