For years, it has been heard how consumer expectations have been changing. As if things weren’t complicated, the Coronavirus pandemic changed the way we interact with customers. As a result, real-time payments come into play.
While it all feels like a novel, companies have tools to fight disruption to their operations. Therefore, an easy way to do this is by using a real-time payment solution.
What are real-time payments and why do they matter?
Real-time payments, also called immediate payments or instant payments, refer to interbank money transfers. Mainly, in which the bank accounts of both the payer and the beneficiary, are updated at the same moment that a transaction begins.
In addition, they combine speed, data and communication, to execute it in a matter of seconds. Also, real-time payments give users immediate access to their funds and instant confirmation of their transaction.
Meanwhile, through convenient and dedicated payment applications, they offer the immediacy and reliability of Fiat coins. Similarly, they allow users the ability to settle payments seamlessly.
Blockchain technology allows companies and financial institutions to make transactions and accept payments directly, eliminating the need for an intermediary like SWIFT.
Based on Blockchain technology, RippleNet eliminates complexities and makes it possible to settle profitable cross-border cancellations in just seconds.
These institutions that use RippleNet also have access to their Low Demand Liquidity (ODL) service. What’s more, ODL eliminates complex promissory note infrastructure by allowing financial institutions to take advantage of Ledger XRP and digital assets as a means of instant settlement.
As a digital asset, XRP acts as a bridge between two currencies, ensuring that payments are quickly delivered and received in the local currency of an area or user. In fact, the use of RippleNet can reduce the settlement period for cross-border payments from three days to just three seconds.
The future is real-time payments
Blockchain technology and digital assets like XRP can reshape the entire financial industry. Similarly, they provide a new settlement method, for financial institutions and consumers alike.
Banks and financial institutions that can provide these payment methods in real time, especially now in this COVID-19 crisis, will be well positioned as innovators and leaders.
ACI Worldwide and GlobalData and their Prime Time for Real-Time
In connection with this, ACI presented the results of its global payments report, Prime Time for Real-Time, during a webinar, moderated by Finextra’s Chief Research Officer Gary Wright.
We will present some interventions in this regard:
- Craig Ramsey: Head of ACI’s real-time payments: “The discussion confirmed that the COVID-19 pandemic, which has already led to massive changes in business and consumer behavior, is accelerating interest in real-time payments worldwide.“
- Ruth Fornell: Executive Vice President of ACI Retail Payments Group: “Real-time payments could offer a cheaper and faster form of payment than cards“
- Leo Lipis: CEO of Lipis Advisors: “Countries that have seen early adoption of real-time payments appear to be leaders in terms of adoption of digital overlay services“
To conclude, the world as we know it is gone, but with this change comes the opportunity to adapt. Despite this pandemic, cancellations must be in real time, to ensure that daily life is not disrupted.