The financial institutions that are in the alternative scheme of the Interbank Electronic Payment System (SPEI), as a result of the cyber attacks, would be outside the application of the Digital Collection scheme (CoDi), reported the Bank of Mexico (Banxico).
Everyone’s getting regulated
The director of the Payment System of Banxico, Miguel Díaz, explained that any regulated financial institution, not only banks, will be able to operate with this scheme, so it is an open architecture, but those companies that are still in the alternate network will be excluded. of the SPEI.
“Participants who are in the alternative system today are working to return to a normality and functionality in the system that is real time, when they enter that functionality in real time they can be integrated into the CoDi”, he said.
During his participation in a Forum of Financial Inclusion organized by the British Embassy and Santander Mexico, he commented that the large technology companies will not be able to operate directly with the CoDi, because the banks are the ones that validate the operations.
What about small businesses?
For small businesses, whose bank has no interest in developing the application or does not give the business, the Bank of Mexico will develop a generic mobile application, so that in this way they can make their transactions, he added.
“From the perspective of issuance of payments is restricted to regulated financial entities in the country, then who can launch a CoDi-type payment are regulated financial institutions that participate in the SPEI, then, the participation in the generation of collection messages is more open, but different entities could participate”, he added.
Large technology companies such as Amazon, Google or Apple, he said, may work with CoDi but indirectly, because so far “we have no formal request from any of these companies to participate with us”.
Regarding the pilot programs announced this morning by the Ministry of Finance to test CoDi, the executive explained that these are small studies that will certify the functionality of the participants.
The importance of this regulation
The objective in the regulation is that at the end of September there is already an obligation to participate on behalf of all the regulated financial institutions, he recalled.
The executive also pointed out that for small businesses, whose bank has no interest in developing the application or does not give them the business, Banxico will develop a generic mobile application, so that in this way they can make their transactions.
How will it work?
He mentioned that large electronic stores could develop their own connection to generate collection requests with certain characteristics, with a standard QR code with certain characteristics, that can be generated through the Internet.
“These are the big ones who have the capacity to carry out these developments, how we do it for the little one where not necessarily their bank or the account holder, the administrator, does not have the intention or the business to generate an application to generate requests for I collect”, he said.
The importance of letting other (such as startups) take part
What we are doing there, he added, is that the Bank of Mexico has already developed an application where basically a shopkeeper could register with that generic Banxico application to make collection requests.
It is a generic application of the Bank of Mexico, but it is also opening the possibility that generic apps will develop, not necessarily from the central bank, but from other participants, and that is where the participation of small technology, startups or small companies comes in.
“Regardless of whether or not your financial institution provides the service, you can capture and receive payments from those institutions that can generate it, that’s why it’s inclusive, that’s why the fintechs have a great opportunity”, he said.
Also published on Medium.