Faster payment solutions are continuing their rise and are promising to change the way banks and other financial institutions conduct business. But as the exchange of money gets faster, the rules for banks are changing and some institutions may need help keeping up to speed.
The new rules of faster payments come with new payment solutions, which have been introduced in regions across the world. In North America, Europe and Asia, companies are investing in solutions such as same-day payments, real-time payment and compliance tools and blockchain technology to help deliver money between parties and across borders at a faster rate. The April Faster Payments Tracker™ showcases the ways that companies are investing in faster payment technology and the changes these solutions are inviting.
News from the world of faster payments
The past month saw some notable developments with blockchain technology. For example, the Illinois Department of Financial and Professional Regulations recently became the first U.S. regulator to join the R3 blockchain consortium, a move that could allow blockchain technology to expand in the U.S. Meanwhile, a recent report anticipates the global value of blockchain technology will reach $7.74 billion by 2024.
But as blockchain’s value and reach is expected to grow, companies are realizing the need to keep blockchain-based transactions secure. PYMNTS’ Karen Webster recently spoke with PayCommerce found and chairman Abdul Naushad about how banking consortiums are working to keep blockchain transactions safe and how the technology is changing retail payments.
Beyond blockchain, other regions are moving forward with their own faster payment investments. In Europe, artificial intelligence solutions provider Pelican landed on EBA Clearing’s “Frontrunner Service Providers” list after it launched its real-time payment and compliance solution, PelicanFast. The solution enables payments to be processed quickly between 34 different European countries.
Meanwhile, across the globe in China, FairFX Group rolled out same-day payments in China and became one of the few players to offer multicurrency transactions in that market. The goal of FairFX’s solution is to give companies that do business in the region the ability to credit funds in a span of 20 minutes.
With more faster payment solutions like FairFX’s becoming available, it’s not surprising that some financial institutions have questions about how the availability of these solutions will impact their business operations. Fortunately for these institutions, there are resources to help address questions and help banks stay in line with what the changes will mean for their operations. For the April Tracker’s Feature Story, PYMNTS recently connected with Joe Casali, SVP of operations and IT for the New England ACH (NEACH) association, about how the organization helps educate banks stay informed about the latest payment updates and how the lessons he learned from Y2K that are informing Same Day ACH rollout.
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About The Tracker
The PYMNTS Faster Payments Tracker™, powered by NACHA, is your go-to resource for staying up-to-date on a month-by-month basis. The Tracker highlights the contribution of different stakeholders, including institutions and technology coming together to make this happen.