The ACI-commissioned study by Ovum titled “2015 Global Payments Insight Survey: Overview” points to new services and technologies as changing consumer and business expectations on payments. These, in turn, are putting new pressure on the global payments ecosystem, comprising of retailers, billing organizations and financial institutions – all facing similar circumstances and expectations, to seriously consider working more closely together than was previously thought necessary.
The entry of non-banks or organizations that are digital-first, if not digital-best, is further exacerbating the situation for incumbent players, including banks as these look to within and outside to define their innovation strategy and roadmap.
“Banks face considerable challenges in coordinating the many accounts and multiple bank communication channels that are needed to ensure a seamless flow of money across their global networks. These include excessive costs, process inefficiencies to cash management and related financial operations,” said Keith Melton (photo right), director, IBM Commerce Payments.
He sees the arrival of the first digital, international hub to make it easier for customers to convert payments and help its banking clients take on the competition from foreign currency exchanges.
In 2013, Imran Ali, then a payments manager for Europe, Middle-East and Africa (EMEA) at Citi’s treasury and trade solutions unit, wrote on bobsguide, that real-time payments are changing the way that banks, corporates, and consumers alike make payments. He cited the launch of the Faster Payments Service (FPS) initiative among UK banks, as just foreshadowing the development of real-time infrastructures in other countries, including Singapore and Australia.
He cautioned that the emergence of real-time payments brings with it opportunities and technical IT challenges. It presents a powerful facilitator for attracting volume to new payment services including online and m-payment services. He also believed that real-time payments represent a new phase of evolution in the payments industry.
Increased domestic use could eventually see a new real-time cross-border service emerge, which would be useful for corporate bank customers. He also predicted that in less than a decade, we can expect a very different domestic and international clearing landscape globally.