Key Instant Payments Market Trends – 2017

21/03/2017

The InstaPay Editorial Advisory Board recently met to discuss the key instant payments market trends, identified from current research and projects, as well as from instant payments engagements that have been undertaken across the world.

The key trends can be grouped into the following categories: Payments Modernisation, Adoption and Usage, New Functionality, Compliance and Funds Settlement.

Here are the key market trends they highlighted.

 Payments Modernisation

  • A payments modernisation agenda is driving many of the instant payments programs globally
  • Modern payment system architectures are required in order to support realtime processing needs and customer expectations
  • Instant Payments is further increasing the mission critical nature of payments market infrastructures
  • A convergence of bank payments and cards infrastructures can be expected over time thanks to the introduction of instant payments


Adoption and Usage

  • Having great ‘Use Cases’ is the key to achieving rapid instant payments adoption and high transaction volumes
  • Corporates and multinational businesses are starting to recognise the value to their business and customers of sending payments instantly
  • New access models are required if smaller FIs are to gain the benefits available from instant payments and compete with larger banks
  • Regional cross border IP scheme interoperability can be seen as a secondary priority, the initial focus should be on launching domestic payments and schemes that achieve quick adoption

 

New Functionality

  • A ‘Request for Payment’ functionality offers great potential and is currently generating high interest levels all around the world
  • The introduction of proxy directory identifiers such as mobile phone numbers and email addresses will be key to ensuring high consumer confidence is achieved


Compliance

  • The multitude of compliance programs currently being faced by banks is slowing down instant payment progress
  • It has become clear that many European banks are looking to include instant payments as part of their PSD2 programs
  • ISO 20022 is now the agreed messaging standard when migrating to instant payments. The debate is over.


Funds Settlement

  • We should expect settlement methods to vary around the world. Each country has its own requirements, legacy infrastructure, stakeholders and priorities.
  • The European Central Bank (ECB) Target Instant Payments Settlement market consultation and plans appears to be unsettling and delaying some bank investment decisions

 

What are the instant payments trends you’re seeing in your market?  Share them with our Editor.

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