I-Pago is the brand name for the new instant payments platform launched in January 2020. Functioning as the local clearing house, one of the strategic goals of the Centrale Bank van Aruba (CBA) is to modernize the payment infrastructure to enhance its efficiency, reliability, and security. Modernization will raise its standard to a level in line with the prevailing international best practices. Therefore, in close collaboration with the commercial banks, the CBA has decided to introduce a new payment platform called Instant Payments Clearing & Settlement Mechanism (IP CSM) or I-Pago. This new payment platform enables participants, such as the commercial banks, to offer instant payments in Aruba.
With instant payments, transferred funds between banks in Aruban florin are made available on the account of the payee / end-customer within seconds, 24 hours a day, 7 days a week and 365 days a year.
The originator fills in the payment details and sends the payment to his/her bank.
The originating bank debits its customer’s account and sends the payment to the CBA IP CSM (the start of the 5-10 seconds*).
The CBA IP CSM validates the beneficiary account via the beneficiary bank.
The CBA IP CSM settles the payment between the two banks.
The CBA IP CSM notifies the originating bank and the beneficiary bank of the successful settlement, and each bank notifies the end-customers (the end of the 5-10 seconds*).
Money transfer between bank accounts and between banks
24/7/365 availability – multi-channel initiation
Real-time processing – processed in seconds
Payment is final and immediate confirmation
Payee has immediate access to funds
With instant payments, you can send and receive electronic payments anytime. The beneficiary has immediate confirmation about the receipt and even access to the received funds.
For e-commerce purposes, instant payments eliminate the risk for online merchants of not getting paid as well as the risk for the customer of not receiving the goods despite having paid, because the release of goods and services can be quickly synchronized with the payment.
For business-to-business payments, instant payments improve cash flow, make it easier to manage funds, reduce late payments and speed up the payment of invoices, even when the customers’ accounts are at different banks.
|Preliminary tariff||Actual tariff|
|2020 (first year)||2020|
|Afl. 0.70||Afl. 0.46|
|2021||Afl. 0.46||To be determined in January 2022|
In 2020, the first year of operation of I-Pago in Aruba, the CBA charged the participating banks a preliminary tariff of Afl. 0.70. The aforementioned tariff was applicable for all transactions above Afl. 250, while all transactions equal to or below Afl. 250 were free of charge. It was agreed between the CBA and the commercial banks that this tariff will be adjusted on a yearly basis based on the actual number of transactions during the previous year.
The actual number of transactions in 2020 was higher compared to the projected number of transactions, which resulted in a drop of the final tariff for 2020 from Afl. 0.70 to Afl. 0.46 for the transactions with a value above Afl. 250.
Consequently, for the year 2021 the preliminary tariff for all transactions above Afl. 250 is set at Afl. 0.46 and all transactions equal or below Afl. 250 will remain free of charge.
With this fee structure, the CBA aims to stimulate the use of I-Pago.
The new I-Pago payment infrastructure provides the technology to implement further modernization of the new payment system, e.g., by introducing the following future use cases. However, their availability will depend on the deployment thereof by the participating banks.
Web payment services are online services that manage the transfer of funds from the customer to the merchant of an e-commerce website.
Mobile payments are payments performed via a mobile device. There are different ways in which mobile payments can take place, for example:
Request for Pay
Request for pay is a secure messaging service that allows electronic payment requests for specific payments to be sent to the debtor account.