Real-Time Payments (RTP) are globally gaining ground, driven by end user consumers demand for convenience and speed. Already more than 20 countries have implemented this technology and are tasting huge success. USA is the latest nation joining this league with the Clearing House recently announcing the launch of its RTP system.
To keep themselves technologically competitive and customer-centric, banks will have to be fully cognizant with this new payment ecosystem with its large and diverse portfolio of real-time payments solutions.
RTP is designed to be consistent with the Consumer Financial Protection Bureau's (CFPB) guiding principles for faster payments networks and the 36 criteria set forth by the Federal Reserve Faster Payments Task Force.
RTP, the game changer
The important difference between RTP payments and other traditional payment systems is that real-time payments guarantees immediate availability of funds to the beneficiary of the transaction. This is in deep contrast to real-time authorization in the case of a card transaction in which the buyer is committed to pay and the recipient is guaranteed to eventually receive the funds, but the availability of funds is not immediate.
Another differentiating feature offered by real-time payments platform is its ability to send more information for example confirmation messages along with payments, this helps the system to provide additional transparency and certainty by notifying both parties that payments have been settled.
RTP brings its own fast and smart features while working in the background, supporting a bank's customer facing systems for services like cash management,bill payment, P2P and emergency disbursements. Financial messages like Request for Payment, Payment Confirmationetc. Can be used in multiple ways to create truly innovative and seamless payments solutions.
Business cases for RTPshall include e-invoicing, bill pay, claim settlement / payments and more. The system is set to be used by all major financial institutions in the U.S.A. by the end of next year.
How Mindgate adds value to the RTP ecosystem.
With its extensive experience of working in the international payment ecosystems for over a decade, Mindgate Solutions is uniquely poised to handle the multiple challenges and opportunities thrown by RTP including market-side and product-side changes, as well as new operations and IT systems.