Summary: Transaction timelines have been shortening for decades, to the point where payments are being cleared rapidly in a matter of seconds. In addition to the clearing of payments being faster, incredible strides have been achieved through the provision of expanded data elements and supporting additional use cases. This article discusses the outlook for faster, smarter, and better payments in 2016.
Key Takeaways: There won’t be a “big bang” implementation of faster payments as many banks are planning on a phased rollout globally of consumer and business services build on a backbone of immediate payments:
- Consumer P2P payment services and retail point-of-sale capability
- Bill payment for consumer and business markets
- Fully fledged business payments services integrated into their infrastructure
The hope is that migration toward prompt payments will also expand opportunities for offering additional services above and beyond payment processing. We will continue to see an excess of payment options – wire transfers, ACH transfers and check payments – have certain inefficiencies, but they will not be decommissioned anytime soon.