Real-time payments can transform banks that embrace it, says Mike Haney, head of digital core at Galileo Financial Technologies sister firm Technisys, in the new PYMNTS eBook, “2023 Payments New Year’s Resolutions.”
Banks occupy a unique position in the payments universe. Transactions often begin and end with a bank account. As mechanisms to move money between those accounts are increasingly becoming real-time, banks must foster a mindset of continuous adaptability to deal with this ever-changing landscape.
Consider The Clearing House’s RTP service which began in 2017. Its capabilities already reach 61% of all demand draft accounts in the United States. P2P networks like Venmo and Zelle recently began clearing and settling some transactions over the RTP network. The Federal Reserve’s FedNow service also launches this year. It is expected to reach 100% of financial institutions in the U.S. According to Global Data, instant payments global growth has a projected 23.6% CAGR through 2025, and FedNow adoption is expected to follow suit.