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What are your instant payments predictions for 2017?

01/01/2017

We asked our distinguished Editorial Advisory Board, with representatives from VocaLink, McKinsey, The Clearing House, Icon Solutions, Payments Advisory Group and Lipis Advisors for their views.

Here are their top 12 predictions below. How do their views compare to yours?

– Every major developed economy in the world will have started planning for a national real-time payments infrastructure (unless they already have one) including new names like Argentina, Indonesia and Russia.

– We will see the first genuine instant account-to-account payment transaction happening in the US, Australia, Finland, Italy and within the European SEPA region.

– The United States will have multiple real-time systems in operation by the end of 2017, including that of The Clearing House.

– By the end of 2017, at least 300 European banks will have registered their interest in joining the new European Instant Payments SCT Inst Scheme.

– “Rip and replace” IT payment strategies will no longer be favoured by banks due to their high costs and associated business risk.

– We will start seeing UK merchants accepting real-time payments using the Faster Payments scheme as an alternative to the Visa / Mastercard networks.

– There will be at least two countries where interoperability contracts have been signed between different CSMs, to go live in the 2018-2020 timeframe.

– The European Central Bank will start discussing the mandating of SCTinst if the ACH community fails to mobilise with suitable speed and interoperability.

– We will see an increase in adoption rates of instant payments by smaller banks, thanks to the arrival of advanced modular payment frameworks.

– The International card schemes will have started M&A assessments for at least one further payments processor.

– The 1000+ page US Federal Reserve final taskforce report will have been published but only read by a small number of junior analysts, Congressional staffers and InstaPay community members.

– Uber will offer its drivers an instant payment option. By pressing the Pay Me Now button, the driver will receive immediate payment for all rides completed up to that second. In protest, licensed taxi drivers in multiple cities around the world will go on strike.

                                                                                                                                                                                      

Author: Art Division