Editor's picks: Developments in instant payments

By Alex Hammond | 8 September 2017

Are traditional hubs a good fit for instant payments?

Aniruddha Maheshwari, Payments Consultant, Icon Solutions

Any mention of payments and multiple schemes, and the gurus are quick to respond with an “industry leader payments hub” as your go-to solution. These hubs are ‘centralized payments platforms’ which provide a unified view of payments activity and business.

What they fail to mention is that these systems were built for handling bulk payments that are processed in batches wherein settlement is almost never in real-time. That’s a far cry from the needs of instant payment schemes planned in Europe (SEPA Instant Payments and Hungary Instant Payments) and the US (TCH Real-Time Payments).

Why instant cross-border payments is the next logical step

Alara Basul, Reporter, bobsguide

The PayCommerce Network consists of a banking consortium of over 100 banks transacting in more than 80 countries. PayCommerce’s network members include banks, financial institutions, global corporates and alternate channel providers.

Bobsguide spoke to Abdul Naushad, Founder and Executive Chairman of PayCommerce on the future of cross-border payments and why regtech is a trend to watch in 2017.

Why banks have to implement Instant Payments

Peter Caiazzi, Senior Vice President of Product Development, TAS Group

Customer expectations are driving the instant payments demand, and technological advances are ready to meet them. So why do many banks seem reluctant in adopting Instant Payments?

In assessing their readiness, banks are finding several hurdles including the inability of legacy systems to encompass instant payments structures; the high costs and downtimes necessary to overhaul their existing payments infrastructure, the incapability of in-house anti-money laundering (AML) and anti-fraud solutions of performing verifications in real-time on high volumes of transactions, potential conflicts in regulations across borders, and impacts on intraday liquidity.

Understanding testing for real-time payments

Alex Hammond, Managing Editor, bobsguide

Marie Costers, FIS Business Line Executive, Open Test Solutions Division, spoke exclusively to bobsguide about the importance of the testing period in real-time payments implementation.

Taking care of business: The US approach to Real Time payments

Tom Hay, Head of Payments, Icon Solutions

The US has always been more business-friendly than the Old World, and New York is peppered with temples to industry built by 19th century tycoons such as John D. Rockefeller and J. P. Morgan. Appropriate then that The Clearing House (TCH) in New York should be designing their real time payments system primarily for the use of businesses and corporates. Its recent Payments Perspective Conference revealed why this approach was taken, and how it is progressing.

In the US, the Venmo P2P payment service has been wildly successful – to the extent that “to Venmo” has entered the vocabulary – a sure sign of mass user adoption. Venmo is a non-bank service, so some of the biggest US banks have got together to launch Zelle, a competing P2P service. Zelle provides a messaging layer that allows the sending bank to debit their customer and send a message to the receiving bank, who immediately credits their customer. The payer and payee perceive this to be a real time payment service, but the inter-bank settlement happens across the ACH rails a couple of days later.