Immediate payments: Are banks ready for the paradigm shift?
The adoption of real-time gross settlement systems (RTGS) has changed the way consumers use digital banking platforms, and the benefits are easy to understand; faster settlement periods, instant notifications and spending reports all provide for a better overall consumer experience.
Until recently, RTGS was the only way to move funds quickly, and was widely adopted by banks around the world. However, payments made via this system could be subject to delays, and on occasion needed to be handled manually, which could be inconvenient and expensive.
In a world where a global mobile network enables instant communication and delivery of online services, consumers have grown to expect immediate payments – an overnight wait for authorisation isn’t good enough.
Half of us want payments to be immediate
According to a survey from Glenbrook, 49% of payment industry participants wanted the ease and simplicity to have access to payment funds immediately. 36% were willing to wait a few hours for the payment to settle, and only 15% of participants were willing to wait to the next day.
These statistics show that effective and quick payments meet the need of not only corporates but also those looking for everyday quick solutions.
Immediate payments will soon become as common as RTGS
According to financial solutions provider D+H, immediate payments initiatives have gathered steam and will soon become as ubiquitous at RTGS systems, and just as important to the countries that implement them.
“Payment technology has moved from overnight batch to real-time,” says D+H in the whitepaper. “In order to remain relevant, banks must now utilise these new capabilities to offer payment capabilities which were unimaginable just two short decades ago.”