Transcription

Postal payment servicesclearing and settlement systemPPS*Clearing

Published by the Universal Postal Union (UPU)Berne, SwitzerlandPrinted in Switzerland by the printing services ofthe UPU International BureauCopyright 2016 Universal Postal UnionAll rights reservedExcept as otherwise indicated, the copyright inthis publication is owned by the Universal PostalUnion. Reproduction is authorized for noncommercial purposes, subject to properacknowledgement of the source. Thisauthorization does not extend to any materialidentified in this publication as being thecopyright of a third party. Authorization toreproduce such third party materials must beobtained from the copyright holders concerned.TITLE: PPS*Clearing, postal payment servicesclearing and settlement systemCONTACT:Universal Postal UnionP.O. Box 3123000 BERNE 15SWITZERLANDPHONE: 41 31 350 31 11FAX: 41 31 351 31 10E-MAIL: [email protected]: www.upu.int

PPS*Clearing, postal payment services clearing and settlement systemWHAT CAN PPS*CLEARING DO FOR YOU?PPS*Clearing was launched in 2012 to secure and facilitate settlements between DOsexchanging postal payment services electronically within the same networkPPS*Clearing is a receivable-driven clearing system open to all designated operators of UPUmember countries that have signed to the PPS Agreement7/7LINK TO A SETTLEMENT AUTOMATED CLEARINGPROVIDERAND SETTLEMENTAre you a postal operatorlooking for software to link toa settlement provider withinthe international money orderbusiness?Could you benefit froma system that automatesclearing and settlementbetween you and yourpartners?CURRENCYCONVERSIONShould this software alsoprovide you with the latestcurrency conversion rates ona daily basis?3

PPS*Clearing, postal payment services clearing and settlement systemBILATERAL SETTLEMENT VERSUS CENTRALIZED CLEARINGWITHOUT PPS*CLEARINGDOs settle their accounts bilaterally and manually at intervals defined in bilateral agreementsCountry CncyrreCuCountry ACu1rreCurrencyncy Difficult process whenmany countries andcurrences are involved2Country E3Country DCountry BWITH PPS*CLEARINGA centralized clearing and settlement system prevents a multiplication of settlement agreements(and periodic payments)Country AUSDUSDEUREURCountry BUSDCountry C4Country DCLEARING HOUSECountry EEnsures payment disciplinethrough a pre-definedclearing calendar Reduces exposure toFX risk through the useof a limited numberof currencies and FXadjustment mechanisms Reduces exposure todefault risk through strictfinancial rules

PPS*Clearing, postal payment services clearing and settlement systemHOW DOES PPS*CLEARING WORK?ON A WEEKLY BASIS: PPS*Clearing generates bilateral invoices, consolidates them and calculates netpositions for each designated operator The clearing house receives payments from net debtors and pays net creditors throughthe settlement provider once per weekTHE SYSTEM IS AUTOMATEDAND PROVIDES DESIGNATED OPERATORS WITH: Detailed bilateral invoice statements on financial traffic Net statements Daily exchange rates (supplied by a common, reliable exchange rates provider) Confirmation of settlement (from settlement provider) Confidentiality and a secure environmentCOMPATIBILITY: The system supports EDI messages that are compliant with UPU standards (MS38-5and above) The system can be used in conjunction with the PTC’s IFS software suite. For moreinformation on IFS, please see our dedicated documentation5

PPS*Clearing, postal payment services clearing and settlement systemCLEARING CALENDAR The calendar is published every year by the clearing house and shows the clearingcycle for each month There are four to five clearing cycles in each monthEACH CYCLE CONTAINS FIVE KEY DATES6DD 2D 6D 7D 11CLOSURE DAYCONTESTATIONAND MENTDAYSUSPENSIONDAY Generationof invoices byPPS*Clearing Verification ofthe invoices bymembers Transfer ofinvoices to thenetting system Membersare notifiedof their netposition Deadlinefor debtors’payments to becredited to theclearing houseaccount Deadline for allpayments to bemade by theclearing house Automaticsuspension ofa defaultingmember Notificationsent to allmembers

PPS*Clearing, postal payment services clearing and settlement systemOVERVIEW OF THE PPS*CLEARING SYSTEM COMPONENTS7

PPS*Clearing, postal payment services clearing and settlement systemWHAT ARE THE BENEFITS OF JOINING PPS*CLEARING?OPERATIONALPPS*Clearing helps designated operators: Optimize their administrative and banking costs Facilitate the process of data reconcilitation and cash-flow management Reduce the risk of errors caused by a manual process Reduce the number of payments to one payment per country (by generating asingle net position for each member)GOVERNANCE PPS*Clearing is managed by the UPU International Bureau The User Group, made up of all PPS*Clearing members, meets annually to electits Steering Committee and takes all decisions related to the system. The UserGroup reports to the POC Clear rules and procedures govern the User Group and PPS*Clearing operationsto ensure the security of financial settlements between members8

PPS*Clearing, postal payment services clearing and settlement systemHOW TO JOIN PPS*CLEARINGAll members exchanging postal payment services within the UPU network can join PPS*Clearingat any time of the year and at an affordable costPROCEDURE FOR JOINING PPS*CLEARINGStep 1: The DO completes and signs the membership form provided by the PPS*ClearingSecretariat. The form is then submitted to the PPS* Clearing Steering Committee forapprovalStep 2: Once the application has been accepted, the future member is asked to pay astanding deposit (5,000 USD) and an annual contribution fee based on the membercountry’s contribution class for the UPU budgetContribution class for UPU budgetPPS*Clearingcontribution classAnnual fee in CHF0.5 or 112,5003 or 525,00010 or more37,500Step 3: Upon receipt of the deposit and fee, a test phase and a training are organizedby the PPS*Clearing Secretariat For more information on becoming a PPS*Clearing member,please contact [email protected]

PPS*Clearing, postal payment services clearing and settlement systemCurrently, 27 designated operators use PPS*Clearing (as of July 2018)AFRICALATIN AMERICAEUROPEBeninBurkina FasoCameroonCongo (Rep.)Côte d’Ivoire nican Rep.EcuadorParaguayPeruUruguayFranceMoldovaSpain10

KIRIBATIIFS and PPS*ClearingCOSTA RICACAYMANISLANDSARUBACURAÇAOUS VIRGINISLANDSGRENADASAINT VINCENTAND THEGRENADINESSAINT LUCIAMARTINIQUEDOMINICAANTIGUA ANDBARBUDASINT MAARTENANGUILLAGUADELOUPESAINT KITTSAND NEVISMONTSERRATBRITISH GIABAHRAINTAJIKISTANKYRGYZSTANMALDIVESR U S S I A NC H I N A( P E O P L E ’ SF E D E R A T I O NSINGAPORER E P. )MACAOHONG KONGTIMOR-LESTE

Universal Postal UnionInternational BureauPPS*ClearingTel.: 41 31 350 31 11E-mail: [email protected] Universal Postal Union – July 2018Contact