Posted by Peggy Olson on 02 Apr 2020
In today’s increasingly mobile and digital economy, Americans are demanding ways they can safely and securely pay anyone, anywhere, at any time, and with near-immediate funds availability rather than using archaic and slow batch processes. As a result, the U.S. Faster Payments Council (FPC) and its members are working to advance the faster payments ecosystem, driving the emerging faster payments infrastructure toward ubiquity, fostering a high-quality and secure user experience for all, and supporting the widespread use of faster payments.
FPC members use private-sector approaches to address issues that inhibit the adoption of faster payments and enable end-users to reach each other in ways as seamless and transparent as mobile texting. As a result, payments are evolving quickly to reduce friction and embrace speed. PYMNTS.com reports that more than 50 real-time payment schemes should be live or underway by the end of 2020.
Some notable initiatives facilitating the real-time transfer of funds to financial accounts include NACHA’s Same Day ACH, Visa Direct, Mastercard® Bill Pay Exchange and Payment On Delivery products, The Clearing House’s Real-Time Payment System (RTP®), the Federal Reserve’s FedNow℠ Service, PayPal’s Venmo, and bank-owned consortium’s Zelle® mobile payments platforms.
While instant, 24/7 availability of faster payments is a huge benefit in terms of managing cash flow, the ultimate advantage may lie in the power of unlocking transactional information. Coupling payment details with transactional data reveals insights to create operational efficiencies, enhance customer engagement and satisfaction, improve data transparency and accuracy, monitor fraud, manage risk, and streamline reconciliation processes.
Bill payments have been identified as one of four use cases that could benefit the most from faster payments. What does this mean for you and your business? Companies offering their customers the latest electronic bill presentment and payment technologies that employ faster payments are poised to greatly benefit.
To get your organization ready, make sure you offer a wide variety of ways to pay in terms of payment channels and methods. Consider implementing mobile, web, text/chat messaging, and e-invoicing channels to enhance how you reach customers digitally to request payments and get them to pay. Also, ramp up payment acceptance options to include faster payment services like Credit, Debit, Same Day ACH, RTP, and more so that they are more likely to pay when you send requests.
The Bottom Line: Your business stands to benefit greatly by taking advantage of faster payments. Make sure you’re implementing the latest and greatest payment channels and methods to reap the advantages.