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Consumers and businesses do not want to use new payment networks unless they believe others are already using them, creating a chicken-and-egg problem. Payers have to know that payees will accept certain payment methods before making purchases, and payees do not want to invest until they know payment instruments are in demand.
The Clearing House 's RTP network is now several years old, and while the real-timepayments capability is gaining traction, adoption in the B2B landscape remains muted. Indeed, it can be difficult for businesses to change their payment habits. This is a new payment system," he noted.
Regional bank holding company Huntington is now using the RTP network, meaning it now has a new real-timepayments option to help people get money nearly instantly, according to a press release. RTP is offered through The Clearing House and is touted as the first new payments rail in the U.S.
According to FICO’s latest survey of consumers from 14 countries around the globe, 90% of all consumers have sent a real-timepayment, and at least 95% of consumers have used real-timepayments in India , Indonesia , the Philippines , and Brazil.
As members of the network, corporate customers of PNC Treasury Management will be able to receive cross-border payments, the FI said, adding that the solution can help them receive payments against their invoices more quickly for streamlined accounts receivable.
This month’s Deep Dive explores how push payments speed transactions, as well as the benefits and potential challenges of their use in real-timepayment systems. Common forms of pull payments include debit cards and paper checks. Pull payments do carry risks for both merchants and payers, however.
“Simultaneously, the evolution of mobile payment options is a response to a wider range of consumer needs and expectations, including alternatives for various types of payees and recipients, transaction types, and faster delivery.” One area mobile banking lags is Real-TimePayments (RTP).
Those lines guide the billing innovations Vocalink is working to roll out over the next 12 months, the recent improvements it has collaborated on and how it sees the market, particularly the rapidly emerging real-timepayments (RTP) market, evolving toward modern consumer needs. Securing And Advancing RTP.
In the case of banks, Edward said, they’ve done part of the job in some instances by connecting to some rails, but they haven’t built the tech or processes to properly offer instant payment solutions. And so right now for real-timepayments that’s got to include … prepaid, debit and credit card, ACH, check, wallets and more.
For corporations looking to push payments instantly, the problem is one-to-many payments, and how to set up payees such that they can choose which set of rails they can seamlessly have funds pushed to. That’s the piece every ecosystem player needs to focus on — though what those pieces are vary by player.
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