In our digital world, instant money transfers have become the norm. Whether we’re sending money to a friend or paying for something online, we expect the funds to be transferred immediately. This wasn’t always the case, however. In the past, bank transfers could take days or even weeks to go through. But thanks to real-time payments (RTP), we can now enjoy the benefits of instant money transfers.
RTP is a type of payment system that allows for real-time processing of transactions. This means that once a transaction is initiated, the funds are transferred immediately – there’s no waiting period. RTP is becoming increasingly popular as it offers a number of advantages over traditional payment methods. For example, it’s great for businesses as it reduces the risk of fraud and chargebacks. It also cuts down on administrative costs associated with processing payments.
Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.
Data for today’s episode is provided by Mercator Advisory Group’s Viewpoint: Monetizing Real-Time Payments
Consumers Do Not Want to Pay a Fee for Instant Money Transfers:
- Consumer payers often already consider payments to be immediate if they are credited in the eyes of the biller.
- 54% of consumers would not be willing to pay a fee to send funds internationally in real time.
- 64% of consumers would not be willing to pay a fee to pay bills in real time.
- 71% of consumers would not be willing to pay a fee to receive insurance claims in real time.
- 65% of consumers would not be willing to pay a fee to send or receive money to/from a checking account in real time.
U.S. payments industry participants are largely in agreement that faster and real-time payments are part of the industry’s evolution. While integration projects to prepare for these new payment types are moving forward with only the slightest consideration of a real business case, the search is still on to look for those use cases where value can be provided and customers will be willing to pay for the benefits.
In this Viewpoint, we consider the use cases where faster payments are generating revenue for providers today and the solutions that are likely to be profitable in the future.