Faster and Real-Time Payments: New Players Primed to Overtake Legacy Solutions
- Date:July 18, 2018
- Author(s):
- Rachel Huber
- Report Details: 23 pages, 6 graphics
- Research Topic(s):
- Tech & Infrastructure
- PAID CONTENT
Overview
In the past 18 to 24 months, the U.S. market has witnessed a revolution in improvement in delivering faster payments to both consumers and businesses. Dramatic examples include the launch and market success of Zelle, the bank-sponsored person-to-person (P2P) network service; the initial deployment of The Clearing House’s (TCH) Real-Time Payment (RTP) service; the expansion of Visa’s and Mastercard’s push payment services, which use their respective debit card networks; and implementation of the third phase of NACHA’s Same Day ACH service. Numerous other commercial deployments leverage many of the aforementioned technologies, benefiting consumers and small businesses. In the next two to three years, the financial services industry is expected to continue expanding the breadth and availability of these faster payment offerings. This report takes a closer look at some of the major faster payment initiatives and explores their potential opportunities for adoption as well as any potential barriers.
Key questions discussed in this report:
- How has Same Day ACH adoption fared since its introduction?
- What is NACHA proposing to do to drive greater adoption of Same Day ACH?
- What is the main challenge to wider adoption of Same Day ACH?
- How successful are the card networks at driving adoption of the Original Credit Transaction (OCT) method as a means of promoting faster payments?
- What is the status of The Clearing House’s Real-Time Payments network?
- How interested are consumers in using real-time payments?
Methodology
- A random-sample survey of 3,000 respondents conducted online in October-November 2017. The overall margin of error is +1.74 at the 95% confidence level. The margin of error is larger for subsets.
Learn More About This Report & Javelin
Related content
Navigating 1033: Technology Considerations for the New Rules of the Road
The long-awaited final rules under Section 1033 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 present technology departments and tech leadership with a n...
Demystifying Payment Orchestration for Banks
Payment orchestration for banks is fundamentally about lowering costs, increasing efficiency, and creating better customer journeys. The process of building orchestration architect...
Banking as a Service and Self-Inflicted Wounds
The “unbundling” of financial services through banking-as-a-service arrangements cast risk and compliance into a gray area. This was underscored by the failure of BaaS provider Syn...
Make informed decisions in a digital financial world