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The Real Rush for Real Time Payments

Real time paymentIn today’s on-demand world, we expect to be able to spend, move and receive money instantly. For this reason, real-time payments (RTP), also known as ‘faster payments’ or ‘instant payments’, are gaining momentum globally.

The Demand for Lightening Fast Payments

RTP exemplifies the unceasing movement toward real-time execution in business. Many activities are in that mode now, from the gathering of customer transactional data for gauging buying preferences, to the second-by-second analyzing of social media imprints, to the continuous accounting (in some companies) that automatically reconciles millions of transactions each day. Most financial institutions, billing organizations and merchants think real-time payments will improve customer service, and most plan to boost spending for payments-related projects, according to new data. The research, gathered by Naples, Fla.-based ACI Worldwide and market research firm Ovum, from more then 1,000 executives of retail banks, billing organizations and merchants, found that 86%, 82% and 78% of those organizations, respectively, anticipated that their customer service will get better thanks to real-time payments. Most respondents also said they expected real-time payments to help cut operating costs. In addition, 51% of the respondents said they will increase their IT budgets for payments-related projects in 2018.

What are the desired outcomes of real time payments?

  • Speed and ubiquity, made possible by electronic solutions for payment clearing and settlement;
  • Security, with incident response that keeps pace with evolving and expanding threats;
  • Efficiency, with more payments being originated and received electronically;
  • International scope, to improve U.S. consumers’ and businesses’ ability to send and receive timely cross-border payments; and
  • Collaboration, so that a broad array of payment participants, from banking institutions to merchants and processors, work together to implement the Fed’s recommendations.

How about my systems and what do I need to think about?

With faster payments being a must have, financial institutions are beginning to realize that payments need to be just as secure as they are fast. To chart a way forward for payment safety and security, employing a variety of approaches for payer authorization, fraud prevention and data encryption will be a necessity. The emphasis on efficiency, taking advantage of real-time messaging approaches that could reduce cost, improve security, and facilitate cross-border transactions is crucial. Application program interfaces (APIs) can enable third parties to develop efficiency-enhancing, value-added services, all while providing  ubiquitous access; resulting in accessiblity to a variety of end users by supporting payments to and from accounts at depository institutions and regulated nonbank account providers.

Learn more in our SEEBURGER Real Time Payment Infographic

By | 10. October 2018
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About the Author:

Ulf Persson
Ulf Persson, SVP, Global Business Development is responsible for thought leadership, global business development, partner programs, marketing and lead generation related to SEEBURGER’s business integration technology and solutions for various global industries such as Financial Services, Utilities, Healthcare and many more. Ulf has more than 25 years of global business and technology experience working with product and solution delivery of enterprise application integration, EDI, B2B, MFT, API, Analytics and Big Data, Mobile, Digital Transformation and industry specific technology initiatives, both on-premise and in the cloud. Ulf has been with SEEBURGER since October 2016, and prior to this with international business integration technology providers working in various global leadership roles.