State of the art IPS NBS system, that is, the Instant Payment System, was launched on 22 October. The most significant advantage of this system is its continuous operation - 365 days per year. This means that we will no longer have to worry if it is weekend or a business day or look at the clock and think whether the bank is working and are they receiving payments, because this system operates 24 hours a day and enables money transfer in a second.
This system enables transactions of amounts under RSD 300,000 almost momentarily. This means that we will no longer have to wait for the so-called “clearing” that enabled transactions under RSD 300,000 three times during the day - at 11h, at 13h and 15h. This, you will agree, very significant feature will enable considerable comfort compared to the old clearing system. Additionally, the IPS NBS provides, alongside standard payments by visiting banks, the option of paying using the computer, mobile phones and other devices.
Considering the fact the system is in the phase of introduction, at the very start the bank will have to enable their clients at least some forms of instant payment, whether by visiting the bank or through the mobile app. In a couple of months, that is, by April 2019, the banks will be obligated to provide instant payments on all available channels for transactions.
Another interesting advantage the banks will be obligated to provide by April 2019 is the option executing transactions using the QR code. This means that the buyer will be able to pay using the QR code. It can be generated on the mobile device, and the merchant can scan it, or vice-versa. The merchant may generate QR code, and the client may scan it and pay in that way. The advantage lies in the fact the money will be transferred in an instant to the merchant, while card transactions take a couple of days sometimes. Considering this fact, we can say that payment cards have some competition now.
In the IPS system there are no orders “on hold”. If we wish to transfer money, and we lack funds on the account, our request will be denied because orders are executed instantly in the IPS. We must pay attention to the fact that there is no option of cancellation in this system, so there is no room for error.
Another small thing that can make your life easier, enabled by IPS NBS is the utilization of the central address scheme. What does that mean? This means that we will be able to transfer money to another user based on the mobile phone number of such user. We do not need to know the account number since the central address scheme contains data on mobile phone numbers connected to their account numbers.
NBS announced minimum commissions for the banks. These minimum commissions look like this:
- 4 dinars per transfer order from bank of the payor
- 1 dinar from merchant's bank for payment at the sales point of the merchant for receipts under 600 dinars
- 2 dinars from merchant's bank for payment at the sales point of the merchant for receipts over 600 dinars
- 0,2% maximum from the amount of payment transactions for inter-banking fee paid by the bank of the merchant.
National Bank of Serbia planned its expenses with the goal of participants paying fees that are symbolic and realistic costs of the NBS for transaction execution. Despite the intent of the NBS to reduce the fees for commissions, the banks are not very active on this issue. For now, commissions are the same as commissions charged in the clearing system.
Since the banks have very low costs in the sense of obligations towards the National Bank of Serbia for the services of IPS NBS, we hope they will implement such business policy that will set competitive prices for fees for instant transfer to attract and retain a significant number of clients.
Citizens will benefit through the option of payment using mobile devices at any time during the year. They will be able to transfer funds from any location with the help of a mobile phone and an internet connection, to the account of another natural person that will receive the money in seconds. Payments can be on-line, in stores, or receipts with QR code can be paid.
All you need to do is download the payment app of your bank. By the end of March 2019 every bank in the IPS NBS system will have to enable M-banking application to its clients. Merchants will have to download software to install on POS terminals or other devices, and the money will be received instantly without delay, as was the case with payment cards.
Considering all presented advantages of this system we can only wait for the full implementation of this project to enjoy its benefits. We are glad to see the entire money transfer process facilitated, as well as all benefits of this system impacting the total functioning of the economy and faster circulation of money in the country.