The adoption of real-time payment systems around the world has contributed a lot and many consumers, merchants, and financial institutions expect to be able to pay friends and customers, settle bills, and transfer money in the fastest way ever.
This year significant changes to real-time payments will be as merchants and billers, like utilities and health insurers, will begin promoting real-time.
Now it became possible for a biller to send an electronic request for payment. Thus, a receiver can make the payment as a credit push by responding on a mobile phone or a laptop.
Billers now can send invoice information electronically and receive payment tied to the invoice electronically for straight-through processing with no hands touching the transaction. All this instead of instead of sending paper bills or processing paper checks which is a big advantage of Real-Time Payments.
What kind of technologies are available for banks to handle the processing on their end?
Some platforms like Mastercard’s Vocalink platform powers faster payments in the UK, Hong Kong and Singapore to provide the real-time payments infrastructure for the banks to connect externally to their customers.
What are the advantages of RTP?
No interchange fees
Cash is an expansive instrument, requiring printing storage, circulation logistics and costs, making it difficult to store and transport. Moreover, many transactions no longer occur in person, which require other methods of payment. Cash can also incur costs, such as check-cashing and ATM fees.
Merchants can also use RTP to bypass credit cards and their interchange fees.
RTP in online commerce
The growing ubiquity of smart devices and booming online retail commerce in markets outside of the US is driving the rapid adoption of real-time payments.
Increased usage of real time payments could help the Government increase tax collection and enhance fraud prevention.
If there are still some concerns about security and identity for real-time payments, they will be final as Zelle has good database so the operator can verify the parties on both sides of a transaction before completing it
Generally, consumers and corporations expect the same simple payment and transfer experience regardless of where they are in the world.
Thus, Real-time payments can present businesses with the opportunity to win, serve, and retain their customers through more efficient, secure and engaging commerce experiences. Financial institutions could be able to provide better services. Economies around the world could be more fluid and adaptive. Real-time payments will likely generate new consumer behaviors and spending patterns, thus increasing revenue for the payment players who are well-positioned to capitalize on this evolution.
What do you think about Real-Time payments and how it can affect your business? If you have your question, please write it below, I would be glad to answer your questions or to introduce your project to my team at Astorts Group to be evaluated.
Alessandro Rocco Pietrocola is an entrepreneur and investor based in London and operating mainly in Europe, Asia and Oceania with main focus on UK, Baltic Countries, Russia, China, Hong Kong, Malaysia, Singapore, Middle East and New Zealand as area of interest! At the moment is the Ceo of Astorts Group. He is an UK FCA (Financial Conduct Authority) Approved Person and is has great experience as director of regulated companies. He uses to dedicate part of his life to inspire others and help them achieve the most out of their life. Since he was 20, he had successfully founded and managed several companies operating in the field of management consulting, wealth management and fintech. He loves travelling, he is a cigars lover, an amateur golfer and a dapper man.