Instant Payments: the new Normal
Alex Hamilton, IBS Intelligence's reporter at Sibos Geneva gives a feedback of José Beltran's session about Instant Paytments. ,
"End users are driving the instant payments landscape, and most companies are doing their best just to play catch-up.
That’s according to José Beltran, Director of Business Development at STET, who was speaking to a packed conference room at Sibos 2016. Competition, regulation, technology and market demand are the four main reasons that payments keeps pushing itself forward, says Beltran, with competition and user demand probably the two main factors. PSD2 could be a game changer in that regard, however, he adds, as it will give opportunities to some “very creative people” and open up payments possibilities.
Throwing out some figures for the audience, Beltran points at the 35% increase in card transactions between 2010 and 2014 as a sign of things to come, though makes sure to highlight the fact that there was also a 22% increase in the amount of cash in circulation in the same period. What is having a larger effect, he concludes, is consumer habits – people are used to getting instant service from the technology in their daily lives. This has led to them expecting better, faster experiences from their banks.
“We really need to work on eliminating [the monopoly of] cash,” Beltran declares. 75% of banks’ operating costs for transactions are represented by cash and cheques, with automated, card and RTGS payments making up the remaining 25%. So what is the Euro Retail Payments Board (ERPB) doing to redress the balance? Interoperability with messaging systems is a must, says Beltran, giving a nod to host SWIFT’s ISO 20022. The European ACH Association is set to work on an interoperability framework for November 2016.
It should be possible for a transaction to be completed in less than five seconds from initiation to receipt. Cross-border peer-to-peer and business-to-business payments are also a big opportunity. Existing clearing systems, though, are “not fit for purpose”. They will need to deliver “high availability, resilience, processing speed and instant clearing and settlement” to make sure they’re ready for proper instant payment implementation."
Source: https://ibsintelligence.com/ibs-journal/ibs-news/sibos-2016-instant-payments-the-new-normal/"End users are driving the instant payments landscape, and most companies are doing their best just to play catch-up.
That’s according to José Beltran, Director of Business Development at STET, who was speaking to a packed conference room at Sibos 2016. Competition, regulation, technology and market demand are the four main reasons that payments keeps pushing itself forward, says Beltran, with competition and user demand probably the two main factors. PSD2 could be a game changer in that regard, however, he adds, as it will give opportunities to some “very creative people” and open up payments possibilities.
Throwing out some figures for the audience, Beltran points at the 35% increase in card transactions between 2010 and 2014 as a sign of things to come, though makes sure to highlight the fact that there was also a 22% increase in the amount of cash in circulation in the same period. What is having a larger effect, he concludes, is consumer habits – people are used to getting instant service from the technology in their daily lives. This has led to them expecting better, faster experiences from their banks.
“We really need to work on eliminating [the monopoly of] cash,” Beltran declares. 75% of banks’ operating costs for transactions are represented by cash and cheques, with automated, card and RTGS payments making up the remaining 25%. So what is the Euro Retail Payments Board (ERPB) doing to redress the balance? Interoperability with messaging systems is a must, says Beltran, giving a nod to host SWIFT’s ISO 20022. The European ACH Association is set to work on an interoperability framework for November 2016.
It should be possible for a transaction to be completed in less than five seconds from initiation to receipt. Cross-border peer-to-peer and business-to-business payments are also a big opportunity. Existing clearing systems, though, are “not fit for purpose”. They will need to deliver “high availability, resilience, processing speed and instant clearing and settlement” to make sure they’re ready for proper instant payment implementation."
Source: https://ibsintelligence.com/ibs-journal/ibs-news/sibos-2016-instant-payments-the-new-normal/
