Adopting real-time is a matter of prioritization and willingness to change

SAN FRANCISCO, March 20, 2019 – Payment modernization in the form of real-time payments is advancing faster globally than in the U.S. to solve market challenges of transparency and accessibility. As the U.S. market begins to adopt real-time payment schemes, payment providers should look at the experiences of their global counterparts for guidance. Javelin Strategy & Research’s latest report, Prioritizing Real-Time Payments: Making Progress to Advance Modernization, provides key insights from the assessment of more than 150 unique real-time and instant payment global methods. The report explores trends driving modernization, business models required to reach ubiquity, and an assessment of use cases that can help jumpstart adoption.

Real-time payment can be segmented into three categories — faster payments, real-time payments, and instant payments— which are not only dependent on when the payment posts to the receiver’s account but how the payment is settled between the sender and receiver. As issuers, merchants, card associations, and payment service providers look to incorporate the real-time channel, they must decide which of the three real-time classifications are best for them, if any.

“The United States is at the precipice of change but the fear of the unknown is causing analysis paralysis while the rest of the world rapidly moves to modernize payment infrastructures. The priorities should not only be on providing faster or instant payments, but on the interoperability of payment systems,” said Krista Tedder, Director of Payments at Javelin Strategy & Research. “All market participants should have a voice in how faster payments are defined. The current market is focused on interconnectivity between financial institutions but the focus should include how to move merchant payments at the point of sale into the real-time ecosystem.”

About Javelin Strategy & Research
Javelin Strategy & Research, a Greenwich Associates LLC company, is a research-based advisory firm that helps its clients to make better-informed business decisions in a digital financial world. Our analysts offer unbiased, actionable insights and unearth opportunities that help financial institutions, government entities, payment companies, merchants, and other technology providers. For more information, visit Follow us on Twitter and LinkedIn.

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