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nstant Payment Revolution
Technological innovations are transforming every aspect of our personal and professional lives. Most importantly, it has given us the power to do more in a day, by cutting down on our waiting time. Customers can make payments anytime, anywhere and time for accepting payments by merchants has also drastically reduced to seconds. Customer’s don’t have to wait in long queues, merchants get quick access to customer database, reports, and analytics – all in real time. Imagine if payment settlements, card refunds, and disbursements could also be done in real time? How would that affect the way businesses operate? It would improve merchants’ liquidity, day-to-day operations and improve customer shopping experience. This is where the world of ‘Instant Payments’ comes into the picture. It’s the payment revolution that the 21st century has been waiting for. But how is this possible?
Say Hello to ‘Instant Payments/Real Time Payments’
Euro Retail Payments Board defines it as an electronic retail payment solution – a service available to the consumers 365 days of the year and where transactions are completed within seconds. Payment companies have already begun to explore instant payments and view it as a major step forward in the payment’s world. PayPal launched a new feature called Funds Now, which gives merchants real-time access to their funds once the sale is completed. By eliminating holds, delays and any reservations; merchants receive instant access to their completed sales within seconds.
Real-Time Payments can benefit consumers, merchants, financial institutions and society as a whole by offering enhanced visibility of payments. For merchants, it offers ways through which they can greatly improve their business and customer experiences. Some of the benefits include:
- Receive funds faster
- Better cash management
- Reduced processing fees
- Drop in fraud and chargebacks
- Improved security
With deployments now surging worldwide, Instant Payments is going to be a real disruptor in the world of payments. According to the Ovum/ACI survey, merchants have recognized the many benefits Real-Time Payments can bring to their business.
Immediate Payment Service (IMPS) – Leading the Front
In its fifth annual Flavors of Fast report, FIS Global identified 40 active real-time payment programs around the world, up from 25 in 2017. As part of its ‘Faster Payments Innovation Index’, FIS awarded India’s Immediate Payment Service (IMPS) with 5 rating for the second time as the fastest growing immediate payment system in the world. The daily transaction volume grew from 2 million per day in 2017 to 2.8 million per day in 2018.
We live in a now world. Consumers are demanding more transparency, certainty and immediacy when moving their money, and they won’t settle for incremental innovation – Raja Gopalakrishnan (FIS Global)
Shaping the Future of Payments
Banking institutions and payment companies have taken initiatives to implement instant payments infrastructure that aims to lead the next stage of evolution for the payment industry. Instant payments are most likely to affect the way consumers transact and the way merchants receive settlements. With transaction settlements happening within a day, there would be a complete shift in how businesses are run. Are you ready for the instant payment’s revolution? #reatlimepayments
