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ACI is at the forefront of the RTP movement, helping financial institutions These schemes typically involve a
implement ISO formats that support RTP and other emerging payment schemes. low-value, real-time payment re-
Dwyer stressed the need for these system-wide upgrades to ISO standards; quest followed by a secure account-
legacy systems unable to support RTP will lose out on related benefits and to-account funds transfer and imme-
opportunities, she stated. diate notifications, the report stated.

A changing reality The authors further noted RTP's ef-
fect on consumers as they acclimate
A report titled Real-time payments are changing the reality of payments, published in to faster settlements, "buy" buttons
2015 by Deloitte Development LLC, examines RTP's evolving role. Current real- and instant paychecks. "While the
time payment systems are based on interbank electronic funds transfers initi- concept of 'paying now' is not a new
ated from smartphones, tablets, digital wallets, and the web, the authors stated. one – cash is an immediate payment
transaction instrument after all – the
growth of 'real-time payment' op-
tions has helped build a new stan-
dard among consumers," they wrote.

Long live cash

The Deloitte authors advocate for
real-time payments as a way to en-
hance transaction visibility while
improving cash management and li-
quidity. "The liquidity improvement
can be especially impactful to small
merchants who may be used to wait-
ing days for their settlement, pos-
sibly creating a positive impact on
their cash flow and daily sales out-
standing (DSOs)," the authors wrote.

While the authors concede that cash
is used "to conveniently exchange
funds in an immediate fashion,"
they question its sustainability in an
electronic commerce ecosystem that
costs considerably less than $200 bil-
lion a year, which they claim is the
U.S. cost of supporting cash.

Dave Lott, Payments Risk Expert,
Retail Payments Forum at The Fed-
eral Reserve Bank of Atlanta, said
the Fed is studying RTP but remains
a staunch cash advocate. "We are
strong cash supporters, allocating
assets, resources and even earning
money for engraving, printing and
circulating cash," he said. And for
many cash-based businesses, that is
good news indeed.

Dale S. Laszig, Staff Writer at The Green
Sheet and Managing Director at DSL Direct
LLC, is a payments industry journalist and
content provider. She can be reached at
dale@dsldirectllc.com and on Twitter at @
DSLdirect.

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