Iberpay Company Profile

Background

Overview

Iberpay is the Spanish Payment Service Company responsible for managing the Spanish interbank payments infrastructure, known as the Sistema Nacional de Compensación Electrónica (SNCE). Established in 2005, Iberpay specializes in processing, clearing, and settling payment instruments such as credit transfers, instant credit transfers, direct debits, cheques, and bills of exchange. Additionally, Iberpay oversees the Spanish Cash Distribution System (SDA), playing a pivotal role in the distribution of cash to financial entities. The company also offers value-added technological and digital services related to payments.

Mission and Vision

Iberpay's mission is to contribute decisively to the digitization, innovation, profitability, and sustainability of the banking sector, thereby driving economic development and social welfare. Its vision is to become the most efficient, resilient, fast, and internationally connected European payment system, with the highest guarantees, positioning the banking sector at the forefront of payments, technology, and digitization, and serving as a key strategic partner.

Industry Significance

As a critical component of Spain's financial infrastructure, Iberpay facilitates the seamless movement of funds between banks, businesses, and consumers, ensuring the stability and efficiency of the country's payment systems. Its role extends beyond national borders, contributing to the broader European and global payment networks.

Key Strategic Focus

Core Objectives

• Digital Transformation: Leading the implementation of SEPA-payment standards within the Spanish financial sector and supporting interoperability with European counterparts.

• Innovation in Payment Systems: Developing and managing advanced payment processing platforms to meet the evolving needs of the financial industry.

• Operational Excellence: Ensuring high availability, scalability, and security of payment systems to maintain trust and reliability among stakeholders.

Areas of Specialization

• Instant Payments: Processing real-time credit transfers, enabling immediate fund transfers between accounts.

• Cross-Border Payments: Facilitating international transactions through integration with European and global payment systems.

• Cash Distribution: Managing the distribution of physical currency to financial institutions, ensuring liquidity and accessibility.

Key Technologies Utilized

• CICLOM Platform: Iberpay's proprietary technology platform designed for high-capacity payment processing, capable of handling millions of daily transactions.

• SEPA Standards: Adhering to Single Euro Payments Area (SEPA) standards to ensure interoperability and efficiency in euro-denominated transactions.

• Real-Time Processing Systems: Implementing systems that support 24/7 processing of instant payments, enhancing transaction speed and reliability.

Primary Markets Targeted

• Domestic Market: Serving Spanish banks, businesses, and consumers by providing efficient and secure payment processing services.

• European Market: Connecting Spanish financial institutions with the broader European payment network, facilitating cross-border transactions.

• Global Market: Engaging in international payment initiatives to enhance Spain's integration into the global financial system.

Financials and Funding

Funding History

Iberpay is a privately held company with its capital structure comprising shares held by participating financial institutions. The capital distribution is based on the level of activity each shareholder has within the SNCE. In 2024, Iberpay welcomed five new shareholders: Unicaja, Abanca, Caja Laboral, EVO Banco, and Inversis, bringing the total number of shareholders to 18.

Recent Funding Rounds

Specific details regarding recent funding rounds are not publicly disclosed. The company's financial growth is primarily driven by the increasing volume of transactions processed and the expansion of its shareholder base.

Notable Investors

Iberpay's investors include major Spanish banks such as Santander, BBVA, CaixaBank, Sabadell, Bankinter, and Ibercaja, among others. These institutions are also direct participants in the SNCE, reflecting their vested interest in the company's operations and success.

Utilization of Capital

The capital raised is utilized to enhance Iberpay's technological infrastructure, develop new payment services, and expand its operational capabilities to meet the growing demands of the financial sector.

Pipeline Development

Key Pipeline Candidates

Iberpay is actively involved in the development and implementation of several key initiatives:

• One-Leg Out (OCT Inst) Scheme: Iberpay has integrated the OCT Inst scheme into its instant payments service, enabling the processing of international cross-currency instant transfers. This initiative aims to enhance the efficiency and accessibility of cross-border payments.

• Request to Pay (SRTP): Iberpay has launched the European Verification of Payee (VOP) service, which checks IBAN data against the payee’s name before any SEPA transfer or instant payment is sent, enhancing the security and reliability of payment transactions.

Stages of Development

• OCT Inst Scheme: The scheme has been fully integrated into Iberpay's instant payments service, with 36 Spanish entities already onboarded, covering 92.5% of the instant payments market share in Spain.

• Request to Pay (SRTP): The service has been successfully launched, with the Spanish banking community actively participating to enhance payment security and user confidence.

Target Conditions

These initiatives aim to address the need for efficient, secure, and real-time payment processing solutions, both domestically and internationally, catering to the evolving demands of the financial industry.

Timelines for Anticipated Milestones

• OCT Inst Scheme: Full-service adoption among Spanish banks is expected by October, with additional institutions connecting to Iberpay’s service in the coming months.

• Request to Pay (SRTP): The service is currently operational, with ongoing enhancements to expand its adoption and functionality across the Spanish banking sector.

Technological Platform and Innovation

Proprietary Technologies

• CICLOM Platform: Iberpay's proprietary technology platform designed for high-capacity payment processing, capable of handling millions of daily transactions.

Significant Scientific Methods

• Machine Learning Algorithms: Iberpay collaborates with Sopra Steria to incorporate artificial intelligence and machine learning algorithms into its interbank fraud prevention service, enhancing the detection of fraudulent activities and money laundering.

Leadership Team

Key Executives

• Juan Luis Encinas: CEO of Iberpay since 2018, bringing extensive experience from his previous roles as CTO at Iberpay, as well as executive positions at Telefónica and various technology consulting firms. He has extensive experience in the payments sector, technology, digital transformation, and digital money.

• José Luis Blanco: General Counsel at Iberpay, overseeing legal affairs and ensuring compliance with regulatory requirements.

• Lucía Bilbao de Azpiazu: Functional Manager at Iberpay, responsible for overseeing the company's functional operations and strategic initiatives.

Competitor Profile

Market Insights and Dynamics

The Spanish real-time payments market is experiencing significant growth, with instant payments accounting for 55.95% of all transfers made in Spain, compared to the European average of 19.67%. This growth is driven by increasing consumer demand for faster and more convenient payment methods, as well as regulatory initiatives promoting digital payment adoption.

Competitor Analysis

• Bizum: A mobile payment platform that aggregates 29 million users across more than 30 banks, processing 1 billion transfers annually and securing nearly 90% share of instant P2P traffic.

• Redsys: A payment processor that collaborates with various banks and financial institutions to provide payment solutions.

• CaixaBank and Banco Santander: Major Spanish banks that, along with Iberpay, have been involved in pioneering initiatives such as the One-Leg-Out Instant Credit Transfer (OCT Inst) scheme, enhancing international instant payments.

Strategic Collaborations and Partnerships

• Sopra Steria: Collaborating to incorporate artificial intelligence and machine learning into Iberpay's fraud prevention services, enhancing the detection of fraudulent activities and money laundering.

• SWIFT: Partnering to integrate Iberpay's instant payment platform with SWIFT's GPI tracker, providing end-to-end visibility of payment status and greater transaction transparency.