One of the largest and most significant projects in fintech that will come to fruition in 2018 is the Clearing House’s (TCH) new Real-Time Payments (RTP) network. bobsguide has been tracking developments and asking those on the front line to give their opinions on developments.
Without question, the adoption of RTP in the US (and Canada) will create the largest RTP market by value and volume globally, potentially also pioneering cross-currency and cross-border RTP between banks. The conventional wisdom is that large scale adoption of RTP payments services will also drive Open API product innovation within banks and fintechs, thus further driving down the costs of investment.
TCH’s stated goal is a steady rate of bank adoption in 2018-19 toward sector ubiquity. But are banks investing in the adoption of RTP as a priority against such a foundational industry goal?
Last month BNY Mellon and Volante Technologies announced that they had been collaborating to enable BNY Mellon to become the first bank to successfully originate a real-time payment over the Clearing House’s (TCH) new Real-Time Payments (RTP) network.
bobsguide spoke with Vijay Oddiraju, CEO of Volante Technologies, and Carl Slabicki, the BNY Mellon Director who manages the company’s Immediate Payments Product Line, to find out more about how the launch will boost the evolution of payments in the US.leading the evolution of real-time payments in the US | Analysis of the deal
While the conversations we have had with payments business leaders point to a willingness to participate in the Clearing House’s RTP scheme, many of them are struggling with the business case to justify the costly adoption of RTP, which they expect due to the need to enhance existing systems and adopt new core payments processing functionalities.
In the Canadian market, both consumers and banks have been early adopters when it comes to banking innovation, whether it is mobile, desktop or behind the scenes technology. Canadian consumers generally expect, and are accustomed to, a cashless payment experience - either through mobile, online or card transactions. So, it comes as no surprise that a market which is so receptive to technology and innovation should recognise RTP as its next strategic opportunity.
Gone are the days when individuals would rely on traditional methods of payments, such as cash and cheques. The advent of computers and mobiles have not only changed the way we work, but also how we manage our financial aspects and payments. The ever changing and evolving technologies have also led to the introduction of newer services, such as e-commerce that has led to the demand for faster payment systems.