Around the globe, new payment schemes are on the rise.
In the Eurozone, the Eurosystem’s new process for settling instant payments is slated to go live this November. As the TARGET Instant Payment Settlement (TIPS) nears its launch date, major financial players are busy at work, ensuring they will be prepared to give their clients access to the service. SWIFT, for one, has received approval to connect to TIPS and will offer access through its forthcoming SWIFTNet Instant platform.
Meanwhile, big changes are coming to Aruba’s central bank, which recently announced plans to develop and launch an instant payments infrastructure by early 2019. The bank signed a deal with a payments and transactional services company to help make that happen.
However, as new real-time payment schemes roll out, financial institutions (FIs) are forced to decide whether they should link directly to the scheme or rely on a partner for access.
The September Faster Payments Tracker reported the latest on newly launching and in-development schemes from around the globe, recent speed updates to existing payments systems and decisions being made on how to connect.
Around The Faster Payments World
Square recently announced upgrades intended to enable two of its card readers to process EMV cards more quickly. The solution works to process payment cards faster, trimming away 1.6 seconds to help merchants speed customers through checkout.
MoneyGram is also focusing its attention on payment cards. The company announced that it would soon enable customers to send digital remittances to the Philippines and Mexico. Recipients can then instantly collect and spend with Visa-branded prepaid or debit cards.
Meanwhile, in the Middle East, efforts are underway to improve the speed of remittances. The Kuwait Finance House announced plans to use Ripple’s blockchain solution to support sending remittances across borders more quickly. The country’s central bank, however, still needs to give the final go-ahead.
To read more on these and other stories from around the space, check out the Tracker’s News and Trends section.
Taking The Direct Route
FIs participating in their country’s instant payment scheme often face a crucial choice. Should they endure the expense and complexity of connecting directly to the scheme themselves, or turn to another party to provide them with access — making them reliant on that partner?
For U.K.-based Starling Bank, direct connection was a must-have if the challenger bank wanted to compete with established, traditional financial institutions, COO Julian Sawyer told PYMNTS in a recent interview.
“We said, ‘Let’s not be tied up to these incumbents,’” he recalled.
In this month’s feature story, Sawyer dives into what offering a direct connection has meant for the bank and how that approach has shaped its client offerings. To read the full feature story, download the Tracker.
About The Tracker
The PYMNTS Faster Payments Tracker™ is the 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 technologies coming together to make this happen.