Real-Time Payments (RTP) is the new global buzzword in payments ecosystem today, being driven by end-customers requirement for speed, convenience and security. RTP is being or already has been implemented in more than 20 countries and are being adorned by customers everywhere. America has been the latest nation to join the bandwagon with its Clearing House recently announcing the launch of its RTP system.
Banks will have to be fully cognizant with the new system to keep themselves ahead in terms of competition, technology and customer delight. They have to now enable themselves with a large portfolio of real time payment solutions.
In America, Real time Payments has been designed to adhere to and be consistent with the Consumer Financial Protection Bureau’s (CFPB) regulatory and guiding principles which are set for faster payments.
RTP, the game changer
Real-Time Payments guarantee immediate availability of funds to the beneficiary of the transaction, this is the most important difference between real-time (RTP) payments and any other traditional payment systems. This is also completely different from the real-time authorization in the card transaction scenario where the availability of funds is not immediate though the buyer is committed to pay and the recipient is guaranteed to eventually receive the payment.
The second vital feature provided by RTP platform is its ability to send more information like confirmation messages, invoice details along with payments, this works a huge differentiating factor and helps the system to maintain complete transparency and certainty by providing real-time notifications to both parties that payments have been settled.
RTP system offers its in-built smart and fast features while steadfastly working in the background, supporting all financial organization’s customer facing systems for services like utility payments, person-to-person (P2P) payments, cash management and other services. RTP system also enables banks to use other financial messages like Request for Payment, Payment Confirmation etc. can be used in multiple ways to create a truly innovative and seamless payments solution.
Business cases for RTP shall 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.