NAPLES, Fla. & LONDON--(BUSINESS WIRE)--Banks, processors and merchant acquirers must adopt holistic real-time and Open Banking strategies in order to monetize real-time payments, according to Get More from Real-Time Payments, a new white paper published by ACI Worldwide (NASDAQ: ACIW), a leading global provider of real-time electronic payment and banking solutions, and payments consultancy Lipis Advisors.
The study sets out recommendations for banks, processors and merchant acquirers and outlines services that allow all participants in the payments ecosystem to create new revenues, increase margins, and shorten the time to ROI.
“Our research shows that the possibilities for value realization in the open and real-time banking ecosystem abound,” said Craig Ramsey, head of real-time payments at ACI Worldwide. “New services such as ‘Request to Pay’ are already proving popular in many parts of the world. Once merchants and banks recognize the benefits adoption will take off.
“Real-time payments and Open Banking add value for businesses in a variety of ways and they have a huge potential to help banks grow revenue and attract new customers when combined.”
“Consumers have been quick to adopt real-time payments in many countries, because they offer additional convenience and functionality,” comments Leo Lipis, chief executive of Lipis Advisors. “Many people are just now beginning to realize that the combination of real-time payments and open banking can improve efficiency, compliance, and create new services for corporate customers, too, and lead to increased revenue for banks.”
The paper outlines new use cases, spanning retail and wholesale payments, that can benefit the entire value chain including:
Benefits of real-time payments and Open Banking for consumer
services
The convergence of real-time payments and Open
Banking will allow for the creation of new types of digital overlay
services, such as Request to Pay (RtP), whereby a biller can send an
electronic request for payment and customers can respond via their
mobile phone to make the payment. India is an example for how digital
overlay services can create an explosion in cashless payments. The paper
predicts that RtP is set to revolutionize billing in sectors such as
utilities, local government or mortgage payments. Other services could
combine real-time payments with related financial services; for example,
banks could offer faster decision on short-term loans by combining
real-time payment systems and data on credit worthiness.
Benefits of real-time payments and Open Banking for corporate
services
Real-time payments and Open Banking have the
potential to address inefficiencies for corporate customers in accounts
receivable and payable departments, where the reconciliation process of
incoming payments to outstanding invoices remains highly manual.
API-enabled systems and more functionally-rich data standards can solve
this, by providing invoices and payments that map to the needs of the
corporate customer.
Benefits of real-time payments and Open Banking for regulatory
compliance
For many banks compliance with
Know-Your-Customer (KYC), Anti-Money Laundering (AML), and
Counter-Terrorism Financing (CTF) sanctions often involve manual steps
that prevent straight through processing, which drives up the cost and
reduces the speed of payments. APIs could allow for two-way
communication with centrally held and up-to-date sanctions lists,
allowing for always up-to-date automated screening. Furthermore,
anti-fraud measures can also be shared among consortium banks, allowing
mule accounts to be identified more efficiently.
Download the complete white paper Get More From Real-Time Payments, from Lipis Advisors and ACI Worldwide: www.aciworldwide.com/get-more-from-real-time-payments
About ACI Worldwide
ACI Worldwide, the Universal
Payments (UP) company, powers electronic
payments for more than 5,100 organizations around the world. More
than 1,000 of the largest financial institutions and intermediaries, as
well as thousands of global merchants, rely on ACI to execute $14
trillion each day in payments and securities. In addition, myriad
organizations utilize our electronic
bill presentment and payment services. Through our comprehensive
suite of software solutions delivered on customers’ premises or through
ACI’s private
cloud, we provide real-time, immediate
payments capabilities and enable the industry’s most complete omni-channel
payments experience. To learn more about ACI, please visit www.aciworldwide.com.
You can also find us on Twitter @ACI_Worldwide.
© Copyright ACI Worldwide, Inc. 2018.
ACI, ACI Worldwide, ACI
Payment Systems, the ACI logo and all ACI product names are trademarks
or registered trademarks of ACI Worldwide, Inc., or one of its
subsidiaries, in the United States, other countries or both. Other
parties’ trademarks referenced are the property of their respective
owners. Product roadmaps are for informational purposes only and may not
be incorporated into a contract or agreement. The development release
and timing of future product releases remains at ACI’s sole discretion.
ACI is providing the following information in accordance with ACI's
standard product communication policies. Any resulting features,
functionality, and enhancements or timing of release of such features,
functionality, and enhancements are at the sole discretion of ACI and
may be modified without notice. All product roadmap or other similar
information does not represent a commitment to deliver any material,
code, or functionality, and should not be relied upon in making a
purchasing decision.
