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Finnish banks advocate the POPS replacement with real-time payments system

Thursday 29 May 2014 14:50 CET | News

Finnish banks have announced the Federation of Finnish Financial Services that POPS, the service by which urgent payments are transferred between banks does not comply with the requirements of the SEPA standards and, hence, advised the federation to search for a real-time payments system which could resolve the situation.

Via POPS, payment information is transferred almost instantaneously from the sender bank to the recipient bank, and the sender bank gets an immediate response that the payment has been credited to the beneficiary account or that it has been rejected. In addition to urgent payments, the system is also used for promissory notes and gift cheques.

POPS was launched in Finland in the early 1990s. It was highly advanced at the time, but is now becoming obsolete and, in search for international markets, Finnish banks need to replace it with a new system that transcends country borders and utilises the SEPA standard.

Customer demands have changed and will keep on changing, and it is important for banks to have a payment system that makes it possible to develop real-time payment service products for both consumers and corporate customers.

This request for information (RFI) is being sent for the purpose of gaining knowledge of services and suppliers available. The RFI does not represent a commitment to purchase.

The Finnish banking community requests information from potential suppliers of a new real-time payment system.

A written response should describe short supplier presentation and how the payment system fulfils the requirements of the Finnish banking community. Detailed descriptions are especially required on the implementation of the real-time transfers and 24/7 operation, as well as on the clearing and settlement mechanism.

Moreover, there should also be mentioned which requirements are already fulfilled by the existing system, which features the service provider would be willing to develop, and which requirements would not be fulfilled.

The Finnish banking community invites all interested parties to submit a written response to the RFI, in English, by 12th September, 2014.


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Keywords: Finland, banks, POPS, PSP, SEPA, urgent payments, RFi, clearing, settlement mechanism, Federation of Finnish Financial Services
Categories: Payments & Commerce
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