Financial Infrastructure

Seamless Payments (Using a Super API)

What is Seamless Payments (Using a Super API) Seamless Payments (Using a Super API) refer to integrated payment solutions enabled by a comprehensive Application Programming Interface (API).

Sandbox

A sandbox is a secure testing environment used in banking, payments, and fintech to safely experiment with systems, APIs, and transactions without affecting real users.

Same Day ACH

Discover the benefits of Same Day ACH, a service enhancing payment speeds within the US banking system. Learn who uses it, why it's crucial for efficient transactions, and where you can find more information on leveraging this financial tool for personal and business needs.

For Further Credit (FFC)

What is For Further Credit (FFC). For further credit (FFC) is a banking instruction used when money being sent is not meant for the first account it reaches, but instead must be passed along to a final beneficiary.

Middleware

What Is Middleware. Middleware is a software layer that sits between different applications, systems, or services and enables them to communicate with each other smoothly.

Interoperable vs Non-Interoperable

What Is the Difference Between Interoperable and Non-Interoperable. Interoperable vs Non-Interoperable is a foundational comparison in modern financial infrastructure.

Interoperable Money

What Is Interoperable Money. Interoperable money refers to the ability of money, payment systems and financial networks to work seamlessly across different platforms, institutions and technologies without friction.

Interoperability in Payments

What is Interoperability in Payments Interoperability in payments refers to the capacity of distinct payment systems whether operated by different organizations or using different technologies to seamlessly communicate and process transactions with each other.

Nature of Payments (NOP)

What Is Nature of Payments (NOP). Nature of payments (NOP) refers to the fundamental characteristics and purposes of financial transactions as they move through different systems.

Distributed Ledger Technology (DLT)

What is Distributed Ledger Technology (DLT). Distributed ledger technology (DLT) is a digital system for recording transactions of assets across multiple locations simultaneously, without relying on a central authority.

Financial Routing

What is Financial Routing Financial Routing refers to the structured process of directing financial transactions through specific channels, systems, and intermediaries to ensure that funds move efficiently, securely, and accurately from one party to another.

Interbank Information Network (IIN)

What is the Interbank Information Network (IIN). The interbank information network (IIN) is a blockchain‑based network designed to improve information sharing between banks involved in cross‑border transactions.

SEPA Instant Credit Transfer

What is SEPA Instant Credit Transfer SEPA instant credit transfer (SCT Inst) is a European payment system designed to enable real-time euro transfers across SEPA member countries.

SWIFT Code

What is SWIFT Code A SWIFT Code, also known as a SWIFT-BIC, BIC code, SWIFT ID, or SWIFT-ISO, is a standardized format used to identify banks and financial institutions worldwide.

SWIFT MT102

What is SWIFT MT102. SWIFT MT102, also known as a "Customer Credit Transfer" message, is a standardized message format used by financial institutions worldwide to securely transfer funds between different bank accounts.

SWIFT MT102 with Message Example

SWIFT MT102 is a type of financial message format used in the SWIFT (Society for Worldwide Interbank Financial Telecommunication) network. It's a multi-customer credit transfer message used for domestic and international payments.

Digital Finance

What is Digital Finance. Digital finance refers to the delivery and management of financial activities through digital technologies rather than physical channels.

Record of Truth

What is Record of Truth A record of truth is the definitive and complete documentation of all financial transactions that have taken place within a financial system.

Receiving Depository Financial Institution (RDFI)

What is Receiving Depository Financial Institution (RDFI) A receiving depository financial institution (RDFI) is a financial institution that receives electronic funds transfers (EFTs) on behalf of its customers and ensures those funds are accurately credited to the intended accounts.

End-to-End Payments Settlement

What are End-to-End Payments Settlement. End-to-End Payments Settlement refers to the complete lifecycle of a financial transaction, where funds move from the payer to the payee and are fully confirmed, reconciled, and finalized.

Real Time Gross Settlement (RTGS)

What is Real Time Gross Settlement (RTGS). Real time gross settlement (RTGS) is a system that allows banks to transfer money to each other instantly and individually, without waiting for batch processing. Each payment is settled one by one, in real time and once completed, it is final.

Web Monetization

What is Web Monetization Web Monetization is a standardized approach that allows creators to receive payments directly from users for consuming digital content on the open web.

IT Systems and Security

What are IT Systems and Security. IT systems and security refer to the integrated set of technologies, processes and controls designed to protect digital infrastructure, financial data and operational systems from unauthorized access, misuse, disruption, or loss.

ISO 20022 Formatted Messages

What is ISO 20022 Formatted Messages. ISO 20022 formatted messages is a global standard for electronic financial messaging that defines how data is structured, described and exchanged between financial institutions across different systems and markets.

Point of Presence (POP)

What is Point of Presence (POP). A point of presence (POP) refers to a physical or virtual location in a financial system where parties connect to exchange payment messages and transmit data.

Platform as a Service (PaaS)

What is Platform as a Service (PaaS). Platform as a service (PaaS) is a cloud-based model that gives businesses a ready-made environment to build, test, deploy, and manage applications without having to maintain physical servers or complex infrastructure.

Payout Partner (PP)

What are Payout Partner (PP). Payout partner (PP) refers to a financial services provider that facilitates the disbursement of funds from an organization to its intended recipients.

Payout Aggregator

What is Payout Aggregator A payout aggregator is a financial service provider that consolidates multiple payout options into a single platform, enabling businesses to send disbursements to recipients across different geographies efficiently.

Payor

Discover the role and significance of the payor in the global banking and financial services sector. Learn about the definition, evolution, and impact of the payor in banking, payments, card schemes, money transfers, compliance, and cryptocurrency, along with real-world applications and future trends.

Payments-as-a-Service (PaaS)

What is Payments-as-a-Service (PaaS) Payments-as-a-service (PaaS) is a cloud-based financial services model that allows businesses to access, manage and streamline payment operations without the need for extensive internal infrastructure or technical expertise.

Payment Technology Service Providers (PTSP)

What is Payment Technology Service Providers (PTSP) Payment technology service providers (PTSP) are companies that provide the technology, software and infrastructure necessary to process electronic payments efficiently and securely.

Payment Service User (PSU)

Payment Service User (PSU) refers to individuals or entities using payment services to send, receive, or manage funds across banking and digital financial systems securely.

Payment Rails (PRs)

What is Payment Rails Payment rails is a collective term used in banking and payments to describe the underlying infrastructure, systems and networks that move money between parties.

Payment Network (PN)

What is Payment Network A payment network is the underlying system of rules, infrastructure, institutions and technologies that enables money to move from one party to another in a reliable and standardized way.

Payment Messaging (PM)

What is Payment Messaging Payment messaging refers to the structured exchange of standardized electronic messages between financial institutions to enable the initiation, routing, processing and confirmation of payment transactions.

ILP - Inter Ledger Protocol

What is ILP - Inter Ledger Protocol. ILP - inter ledger protocol is a technical framework designed to enable value to move seamlessly between different payment systems and ledgers.

Financial Market Infrastructure (FMI)

What is Financial Market Infrastructure (FMI). Financial market infrastructure (FMI) refers to the systems, institutions and processes that enable financial markets to operate safely and efficiently.

Fedwire

What is Fedwire. Fedwire is a high-value, real-time funds transfer system operated by the federal reserve system. It is primarily used by banks and other financial institutions to send large-dollar, time-critical payments within the United States.

Regulated Liability Network (RLN)

Explore the Regulated Liability Network (RLN), a shared ledger system for tokenized bank deposits and central bank money. Learn how RLN enables real-time, compliant financial settlement without the volatility of crypto.

UETR Number (UN)

What is UETR Number A UETR number (Unique End-to-End Transaction Reference) is a unique identifier assigned to each cross-border payment transaction, allowing it to be tracked from initiation to completion.

Federated Byzantine Agreement (FBA)

Explore the transformative power of Federated Byzantine Agreement (FBA) in banking and financial services. This article delves into its origins, importance, applications, and future trends, offering an insightful overview for professionals and enthusiasts alike.

On-Core

What Is On‑Core. On‑core refers to banking accounts and operations that are established and maintained directly on a bank’s core banking system.

Super API

What are Super API. A super API is an advanced form of Application Programming Interface (API) that consolidates multiple APIs into a single unified interface.

Settlement Systems (SS)

What is Settlement Systems Settlement systems are the financial infrastructures that facilitate the finalization of fund transfers between institutions, networks, or payment service providers.

Settlement Account (SA)

What are Settlement Account (SA). A settlement account (SA) is a specialized bank account designed specifically to facilitate the finalization of financial transactions between parties.

Settlement

What is Settlement Settlement is the finalization of financial transactions, ensuring that funds or assets are transferred from one party to another as agreed. It represents the completion of the payment cycle, confirming that obligations between parties are fulfilled.

Credit Transfer (CT)

What is Credit Transfer. Credit transfer is a widely used payment method that allows funds to move directly from one bank account to another, initiated by the payer.

Core Banking (CB)

What is Core Banking. Core banking refers to the centralized system that enables banks to deliver their core services such as deposits, withdrawals, transfers and account management; through a unified digital platform.

Closed Payment Networks

What are Closed Payment Networks. Closed payment networks are specialized payment systems that restrict financial transactions to a pre-approved group of participants.

Capital Market Settlements

What are Capital Market Settlements. Capital market settlements refer to the processes that finalize the transfer of securities or cash after a trade is executed. They ensure that the buyer receives the securities and the seller receives the payment in a timely, accurate and secure manner.

Clearing Account(CA)

What Is a Clearing Account. A clearing account is a temporary account used to hold funds while transactions are being processed, verified, or allocated to their final destination.

Check Franking (Franking a Cheque)

What is Check Franking. Check franking, also known as franking a cheque, is the process by which a bank or authorized financial institution marks a cheque to confirm that it has been officially processed, verified, or cleared for payment.

Card Rails

What are Card Rails. Card rails are the underlying infrastructures and systems that enable electronic card transactions. They encompass the protocols, networks and technologies that move payment data from the point of sale (POS) to the issuing bank and back.

Banking Rails(BR)

What is Banking Rails. Banking rails refer to the foundational infrastructure that enables money to move within and between financial institutions.

Application Programming Interface (API)

An Application Programming Interface API enables software systems to communicate, exchange data, and integrate seamlessly through defined rules and protocols.

Account Title Fetch

What is Account Title Fetch. Account title fetch is the automated process of retrieving the officially registered name associated with a bank account number before a transaction is completed.