Real time payments - The next stage of evolution of the international financial railroads
As the global economy grows increasingly digital, most players that form the backbone of today’s ﬁnancial ecosystem are seeing the reducing share of cash and paper-based transactions, especially beyond the retail and P2P transactions. However, the B2B, B2C, G2C and C2B payments landscape is exhibiting a rapid shift too. While the pandemic highlighted the need for moving money faster and digitally, other factors such as new inter-entity interactions and business relationships are also fuelling the need for faster ﬁnancial railroads.
Estimates suggest that small and mid-sized businesses in the UK alone spend 56 million hours each year chasing late payments. In the US, most categories of consumers and service providers desire instant disbursements of funds. While decades-old paradigms like ACH enable faster movement of money across accounts, more than 38% of transactions take more than three days to settle in the US.
Add to this, the increasing complexity of money movement across borders in an increasingly globalizing economy, and it becomes easy to spot the need for a new paradigm in the way we experience ﬁnance in the business context. The need for upgrading the railroads that move money across the globe is clear - is the Real-Time Payments framework an adequate answer to this need? How exactly is ISO 20022 transforming the digital payments game for ﬁnancial institutions? And more importantly, what implications will this shift entail for businesses?
Read this whitepaper to know more!