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:

Instrument TypeCardsCards are one of the most popular payment methods. Cards are mostly processed through separate networks run by the Card Networks
MobileMobile as a payment instruments is used in mobile money platforms, inter-bank payments and P2P payments
Traditional Inter-bankInter-bank payments can be initiated at the bank through any of the channels
Settlement AmountGrossThe amount for each payment/transaction is settled separately
NetThe net liability/dues for the participant is settled in each cycle
Settlement TypeReal-TimeThe settlement is done in real-time immediately on initiating the payment request
DeferredThe settlement is done in batches. cumulative for all the payments/transactions done in the batch/cycle
Value (Amount)High ValuePayments above threshold value. Differs country to country
Retail (Low Value) / MassPayments of any value are processed with no lower or upper limits (usually)
Clearing TypeSingle InstructionEach instruction is separately cleared and settled
BatchMultiple instructions are grouped together and processed in a batch process
Payment DirectionCredit (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.

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