Real-time payment systems offer significant potential to accelerate growth and innovation in the payments industry. Instant payments, with low cost and irrevocability, yield systemic benefits for all parties in the transaction. It is the advent of new-age technologies including 5G, blockchain, and IoT that holds the potential for real-time payment systems to attain higher speed, rich context, connectivity, and security. Financial institutions accessing the data in real time will improve the customer experience, fuel connected commerce, and provide new products and services.
The adoption of real-time payment systems is driven largely by the inherent characteristics of the local infrastructure, demographics, and a supporting ecosystem. The innovation-led growth in the adoption of real-time payments — in addition to increased interoperability and harmonization of data — will provide the impetus for businesses to transform their real-time payment systems to stay ahead of further and future disruptions.
Several factors are essential within a real-time payments system, as shown below. Wipro’s report, Real-Time Payments Accelerated, provides a more detailed look at these factors, which drive the real-time payment systems, and the benefits of real-time payments.