Faster Than a Speeding Payment: The Race to Real-Time Is Here

by Gareth Lodge, June 30, 2016
Industry Trends
Global

Abstract

Celent has released a new report titled Faster Than a Speeding Payment: The Race To Real-Time Is Here. The report was written by Gareth Lodge, senior analyst in Celent’s Banking practice.

 

In the two years since Celent’s last reports on real-time payments, much has happened, not least of which are the industry’s perception and understanding. As a result, the discussions in many countries that don’t have real-time payments infrastructure are now when they will adopt, rather than why would they adopt. Yet in that intervening period, it’s not just the pace of adoption that has accelerated, but that market and thinking around real-time itself has matured as well. Rather than just being “faster ACH,” real-time payments is increasingly being seen as a fundamentally different payment type. As a result, banks need to think about where real-time is heading, and to plan accordingly.

This thinking is set out in this report, and seeks to explore the following questions:

  1. What is the pace of real-time payment adoption?
  2. Why should our bank plan for real-time payments?
  3. What should a bank do regarding real-time payments?

“Real-time is firmly here, and is increasingly being seen as the payment system of the future. Banks that try to limit the scope of projects today may be saving themselves money in the short term, but they are likely to creating more work, more costly work, in the future,” said Lodge. “Ultimately, however, building a digital bank without building and integrating digital payments will be futile.”

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is part of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

1

Real-Time Payments: Now When, Not If

3

 

The Story So Far

3

 

Real-Time Payments Today

5

Real-Time Payments: Evolution Under Way

7

 

Scheme Properties

7

 

Business Enablement

8

 

Cross-Border

8

The Market Is Moving Regardless

10

Planning for the Future

14

Path Forward

17

Leveraging Celent’s Expertise

18

 

Support for Financial Institutions

18

 

Support for Vendors

18

Related Celent Research

19

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