Mode of Connectivity to the Payment Infrastructure
- Direct Participants: an entity with direct access to the payment system’s services and is bound by the rules of the payment system. Its transactions are cleared and recorded by the payment system through a direct link to it. All settlement participants must participate as direct participants.
- Indirect Participants: an entity that does not have direct access to the payment system’s services and is typically not directly bound by the rules of the payment system but whose transactions are cleared and recorded by the payment system through a direct participant. Indirect participation is possible through a bilateral agreement with a direct participant.