Page 20 - GS161102
P. 20
Views
The very point of sale account immediately," versus inevitable delays associated
with other transmittals such as wire transfers.
Payments are live Ben Isaacson, Executive Director of Payments Strategy
at JPMorgan Chase & Co., added, "I'd echo Shari's comments
By Dale S. Laszig about immediate availability of funds; banks need to be an
DSL Direct LLC end-to-end system with risk management and governance
that gives the bank the confidence to give the money [to a
E arning an acronym in payments is the ultimate particular customer] right away."
high-five for an industry trend. The real-time
payments (RTP) movement, not to be confused Dan Gonzalez, Vice President of Payments Industry
with Real-time Transport Protocol, is gaining Relations for the Federal Reserve Bank of Chicago, prefaced
worldwide momentum. FaceTime, Facebook Live, proxim- his remarks with a disclaimer that his views were his
ity marketing and location-based apps are fueling a wide- own and not the official position of the U.S. government.
spread dependence on mobile technologies. The payments He stated the Federal Reserve is involved in an ongoing
industry is implementing an array of real-time capabilities, initiative designed to energize payments providers.
advancing the RTP concept from implausible to inevitable.
The Fed is exploring real-time payments in the following
NYPAY, a professional networking organization, recently use cases: emergency bill and healthcare payments; P2P;
reported a gathering storm of real-time payments P2B bill pay; B2P payroll; and ad hoc high value payments,
initiatives, including the following: many of which are a vital concern for unbanked and
underbanked consumers, Gonzalez noted. "We created a
• NACHA – The Electronic Payments Association's task force to bring together industry stakeholders to help
banking initiative designed to speed up automated define [real-time payments] where the commitment to pay
clearing house (ACH) payments from one to three can be as important as the settlement," he said.
days to same-day
The panelists' perspectives led NYPAY and Deloitte
• Private payment networks Dwolla Inc. and FIS' to conclude that devising an overarching definition of
support of real-time payments real-time payments will likely be a work in progress for
the foreseeable future. But the industry has since made
• The Federal Reserve's task force effort involving significant progress, both in building the necessary
payments industry stakeholders to define a real-time infrastructure to support real-time funds transfer
national payment system capabilities and in managing expectations among
consumers, merchants and financial institutions.
• A collaboration between ACI Worldwide and
VocaLink to create a faster payments network Global ISO, RTP trends
infrastructure in the United Kingdom, Singapore
and Australia. Payments analysts attribute the progress of real-time
payments initiatives to a number of factors. Some analysts
Divergent paths, viewpoints pointed to the need for hyper vigilance to protect against
cybercrime. Others emphasized the need for accurate
In June 2016, NYPAY and Deloitte LLP co-hosted a redemption of points and loyalty programs and the rising
networking event and panel discussion in New York City to number of self-service use cases involving mobile banking
explore real-time payments. NYPAY President David True and payments that would be better served by immediate
noted a diversity of viewpoints among the four-member responses from processing hosts.
panel, which was moderated by Eric Piscini, Consulting
Principal at Deloitte Banking and Technology. "NACHA now supports the same-day settlement of most
ACH credit payments," wrote Kathleen Dwyer, Principal
Panel member Shari Krikorian, Senior Business Leader, Product Manager, Transaction Banking at ACI in an October
Emerging Payments at Mastercard, advanced the idea of 2016 blog post. Dwyer additionally noted an upcoming
real-time payment through the eyes of consumers, who need release of RTP by The Clearing House that will be widely
and want to see accessible funds in their bank accounts that available to U.S. financial institutions.
they can immediately use to buy things. From a technology
perspective, this means real-time authorization when an "Between NACHA same-day ACH and The Clearing
issuer posts money to a bank account. House RTP, there are very few payments that don't have
the ability to be settled same-day with low cost options,"
Eric Purdum, Vice President of FIS' PayNet Payments Dwyer noted. "This has the opportunity to truly change
Network concurred with Krikorian's view, stating, "I'd add the way a corporation handles its money and interacts with
business to that concept, with funds posted to a business both customers and vendors."
20
