Making Ubiquity A Reality: Real-Time Payments Pushes Ahead In The U.S.
As a member of the Faster Payments Task Force, an initiative of the Federal Reserve, I am pleased with the newly released report findings and the push to achieve the Federal Reserve’s Faster Payments call to action in just twenty-nine months from now; a payment system that is faster, ubiquitous, more inclusive, highly secure, and more efficient.
The power of an instant payments network
The true power of an instant payments network is its ability to seamlessly integrate financial institutions, billing organizations, merchants, government agencies, insurance companies, lenders, and other stakeholders across the ecosystem. The Fed report outlines recommendations for cross-system operability to create harmony across these networks. This project has been a long process, and received some criticism for its duration. However, the recommendations provided all point toward the extended governance and oversight that is needed in such a large market to help make ubiquity and adoption a reality.
While The Clearing House (TCH) and Zelle are launching new real-time schemes to the market, ubiquity will require even more players and greater reach—third party service providers and intermediaries are already playing an important role here. For example, Jack Henry & Associates announced in March that it would drive accessibility to TCH and Zelle real-time rails through its use of ACI’s UP Immediate Payments. The reach of Jack Henry covers more than 10,000 financial institution clients and their customers, further supporting the drive to ubiquity.
As per the Fed’s recommendations, every bank and credit union will have an efficient and practical means to better serve its customers. Eventually, the overlay services that the credit unions and banks offer will cross the entire market; corporates can achieve better reconciliation, consumers can pay their insurance bills before coverage lapses, billers can reduce days sales outstanding. Anyone who wants to receive or send money in real-time will have options. In this sense, real-time inclusiveness is a huge factor in enabling ubiquity.
Faster payments strategies are now under the microscope
With the countdown to U.S. scheme go-lives, institutions are under pressure to shape their faster payments strategy and progress to execution mode ahead of the competition. As new models of interactions like Open APIs, Request for Payment and proxies emerge, it will be interesting to see how our payments system capabilities shift to create universal accessibility and better experiences – for both payment scheme participants and their end users.
Institutions must ensure they choose a solution that addresses the distinct needs of a modern, real-time payments processing environment and scales to meet evolving scheme changes or the next big market demand. ACI’s long and extensive track record of driving immediate payments initiatives around the world, aided by our IP experts, continue to help competitive players – both big and small – navigate the new payments ecosystem and adopt a solution that aligns with their digital payments strategy.
Related Blog Posts
Increasing Collections & Satisfaction: Real-Time Payments for Loan Servicing
The old adage that “cash is king” is precisely that: old. In today’s world, convenience is king and real-time payments deliver it in spades. Consider that convenient ways to pay can reduce late payments by up to 76%, while reducing call center volumes by up to 83%, and it’s no wonder lenders are expanding their offerings over time to include checks, ACH, debit cards and now real-time payments.
GDPR: Modern Wealth Is In Your Digital DNA
Hands up if you don’t really know what GDPR is… don’t worry, you’re not alone in fact, 6 in 10 people have never heard of it.
And why should the average consumer know about the General Data Protection Regulation (GDPR)? The regulation itself, which will become enforceable in May 2018, is designed to stop businesses using our data without our knowledge or consent. And that consent means complete transparency on how our data is being used. This sounds like a very reasonable expectation for consumers to have, which of course begs the question; why hasn’t this been the standard up until now?
Fintech Frenzy and Fun
I’m in vibrant Singapore for day one of the inaugural Money20/20 Asia... or is this day two? I’ve lost all concept of time this week (and didn’t realize how close Singapore is to the equator… it’s like wicked hawt outside!) And I’m joined once again by my ever-intrepid Rantings colleague to rant about what’s happening in this fun-filled world of payments.
It’s A Hard Knock Life: Digital Transformation for Payment Service Providers in the New Payments Ecosystem
Is it a hard-knock life for processors and PSPs? Margins are constantly under pressure, and there’s the need for constant innovation, not to mention rock-solid #SleepAtNightability of solutions. And if there’s even the slightest crack in the fundamentals, customers will surely let you know all about it!
Instant Payments Are at the Heart of the New Global Payments Landscape: 10 Trends to Watch in 2018
2017 was a big year for immediate payments: European Banking Association, Real-Time 1 (EBA RT1) SEPA Credit Transfer Instant, The Clearing House (TCH) Real-Time Payments in the U.S., and the Australian New Payments Platform (NPP) schemes, all either going live, or in the case of Australia, about to go live. These schemes enable real-time payment transfers across the United States, 34 European countries and Australia, with the potential to reach nearly another 1 billion people. This comes on top of the existing live schemes in the UK, China and India, so that over half of the global population now can access real-time payments solutions.
The Complexities of Cannabis: Banks, Merchants, Consumers and More
Cannabis—it’s no longer the verboten 800-pound pink elephant (though I think that might be a new strand). It’s about as mainstream as well…mainstream. And as we begin our latest Rantings Rant, it seems like the last time we (well, not you or I) experienced something like this, Al Capone and Elliot Ness were facing off during the time of Prohibition (if you’ve never seen the film The Untouchables, I highly recommend it!).
KodakCoin and Six Ways That Blockchain Could Really Be Leveraged
The newest cry in the cryptocurrency clamour? That of heritage-photography-giant-cum-new-kid-on-the-payments-block, Kodak. Unbelievably, they have managed to out-blockchain the long-island-iced-tea company in their audacity, and (more than) double their share price to boot.
Why User Engagement Matters, Even for Enterprise Applications
As a User Experience Designer at ACI, I spend a lot of time watching users interact with my designs. I need to make sure our solutions work properly, but lately I’m more interested in how they make my users feel. Engagement is a dominant concept in user interface design right now. It’s important because positive emotional experiences often lead to increased use and loyalty.
Five Payments Trends to Watch in 2018 [Part 2]
The New Payments Ecosystem Is Here. The floodgates are opening with PSD2 and UK Open Banking coming into force, bringing an onslaught of new competitors and potential partners. Whether evolution is mandated or market-driven, banks and processors are facing a critical year in their long-term success.
Five Payments Trends to Watch in 2018 [Part 1]
2018 is set to be a year of rapid change and new challenges for payments players. The floodgates are opening with PSD2 and UK Open Banking coming into force, bringing an onslaught of new competitors and potential partners. Whether evolution is mandated or market-driven, banks and processors are facing a critical year in their long-term success.