Next Phase of Digital Disruption Arrives on the Rails of Real-Time, Per New Report from ACI Worldwide, KPMG and Vocalink
Possibilities for value realization in new real-time banking ecosystem abound, new White Paper finds
The study, Real-Time Payments: Value Realization is Herepredicts that combined with other digital and payment trends such as mobile wallets, open banking and modern data standards, the possibilities for value realization in the new real-time banking ecosystem abound.
- With the reach of real-time payment schemes expanding to potentially one billion consumers worldwide, the next stage in the real-time payments evolution will be a global network that supports a fast, open and digitally sophisticated payments ecosystem.
Request for pay (RfP) services that are emerging in the US and
Europewill be one of the opportunities to provide value-added services for merchant and corporate markets.
- The move toward instant, multicurrency payments is set to revolutionize the cross-border transaction market.
“The next stage in the real-time evolution is already unfolding across
the globe. This is not just about fast payments anymore, but about
securing a winning place in the new digital banking ecosystem, and the
role of real-time in the new payments world is increasingly vital. If
you do not offer real-time services to your customers soon, another
business will,” said
“These days, financial institutions must shift their approach to remain
relevant in the payments disruptions and movements of the modern age.
They need to ‘act like a startup, think like an enterprise.’ Banks must
get out of the monolithic mindset and embrace a holistic enterprise
As the UK Faster Payments Schemes celebrates its 10th anniversary in May, the research report reveals key insights and figures from maturing real-time regions:
The Faster Payments Service (FPS) in the
UKwas launched in 2008 and has since become firmly entrenched in the country’s payments ecosystem. In 2017, FPS processed over 1.7 billion payments, a 16 percent increase over 2016, for a total value of more than 1.4 trillion British pounds(GBP), compared to GBP1.2 trillionthe year before.
UK, the volume of real-time payments rose at the expense of checks first. Between 2008 and 2016, check use in the UKplunged by GBP1.06 trillion, almost the exact size of FPS’s GBP1.19 trillionmarket share.
While the initial impact has been on checks, the future impact on
wires is on the horizon: The transaction limit of UK Faster Payments
is projected to increase significantly from the current limit of
GBP250,000. The limit of Singapore’s FAST scheme increased from US $10,000to US $50,000to address corporate needs.
Pingit and Paym entered the
UKmarket in 2012 and 2014 respectively, providing a digital, frictionless and instant payments experience for consumers. Pingit and Paym now cover approximately 5 million accounts in payment services.
The Nordic countries have gained remarkable traction with real-time
payments technology. Swish and Siirto, Swedish and Finnish mobile
instant payments solutions, allow for 24/7 real-time P2P and P2B
payments, using a mobile phone number. By 2020, it is projected that
50 percent of all payments in
Denmarkwill be made using a smartphone.
Singapore, an overlay service, PayNow, was introduced, allowing payment using QR codes via mobile phone. This new service, deployed in 2017, is a strong example of how innovative services can be built on top of real-time rails.
“Real-time readiness should be viewed as a strategic leap toward modernization, both from a business model and a technology perspective,” continued Ramsey. “The right choices now raise the odds of long-term success in what is rapidly becoming the world’s fastest growing payments mechanism.”
“As the reach of real-time payments expands, so do value-added capabilities,” added Hagey. “And when combined with other digital and payment trends such as mobile wallets, open banking, and modern data standards, the possibilities for value realization multiply.”
ACI has an unmatched global customer base of financial institutions and
payment service providers using its UP Immediate
Payments solution. In the
KPMG is one of the world’s leading professional services firms, providing innovative business solutions and audit, tax, and advisory services to many of the world’s largest and most prestigious organizations.
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