Our latest insights

Realtime offers immense potential for payments for banks and fintechs, finds Payments Association report

Share this post

Realtime offers immense potential for payments for banks and fintechs, finds Payments Association report

London, UK. 13th November 2019: New research from The Payments Association reveals that ‘realtime’ payments are growing rapidly in the UK, signifying potential for business payments for banks and fintechs.

The leading trade association has today published its original research, The Impact of Realtime on Payments and Data, which details how consumer expectations have drastically changed over a short period of time – and consumers no longer accept delays to funds movement or clearance.

The spike in demand for realtime payments was sparked by the implementation of PSD2 and Open Banking in 2018. Intended to be a catalyst for innovation in the financial industry, the regulation has massively impacted consumer behaviour and attitude towards slower payment processes.

Mark McMurtrie, Payments Association Ambassador and report author, commented: “Realtime is the new normal for payments procession. Customers expect realtime, regulators encourage its adoption and competition demands that instant payment options are provided.

“This comprehensive report, based on input from an interactive workshop with Payments Association members, examines the key use cases, innovations and regulations behind the rapid growth of realtime in the UK, across Europe and throughout the world.”

The move towards realtime payments can prove beneficial to businesses since additional data can improve insight into customer behaviour, allowing for instant rewards and personalised offers. However, the report also warns that faster processing times create more opportunities for criminals to exploit businesses. More investment must therefore be made to enhance fraud protection.

The report also highlights that the amount of innovation a financial institution can deliver is severely hampered by the growing number of regulations that have to be completed, tying up financial and employee resources and management bandwidth. This means that there is still a way to go before demand for ‘realtime’ payments can be met as commonplace.

For more on what ‘realtime’ really means and what the industry needs to do to match consumer demand for instant payments, download the report here: http://www.emergingpayments.org/article/the-impact-of-realtime-on-payments-and-data/.

The report was produced following a series of Project Futures workshops, hosted by the Payments Association. Project Futures is designed to provide insight and thought leadership on new innovations and technological developments, emerging market trends, and the prospective future regulatory landscape in payments.

Previous reports from Project Futures have explored: The impact of new credit and lending services on payment providers, Data proliferation and using data to drive payments innovation, Monetisation of data, and Innovation in international trade. To access previous Payments Association reports, go to: https://www.emergingpayments.org/.

More To Explore

Login or Register

Don't have an account?

Are you part of the Payments Association community?

Not yet set up your login for the Payments Association Community Platform? Set it up now

Set up a free account for instant access to our content

You don’t need to be an Payments Association member to view the majority of our content. Simply enter your details below once to set up your login details and get access to our library of whitepapers, podcasts, consultation papers, webinars and more.

First Name*
Last Name*
Company Name*
Job Title*
Username*
Business Email Address*
Password*
Confirm Password*
Agreement*
The Payments Association exist to help drive the industry forward. As such the Payments Association may contact you about any future content or events that we think you may have a legitimate interest in. We will store your information securely and will never share your details with third parties other than the relevant resource(s) sponsor(s)/curator(s). You may opt out at any time. By clicking register you are agreeing to the terms of our Privacy Policy.

← back