FIs Don't Consider This a Reason to Launch RTP
When it comes to business drivers, Financial Institutions (FIs) consider competitive pressure to be their least likely reason to launch Real-Time Payments (RTP), per Levvel’s 2020 RTP Report. While customer attraction, demand, and retention ranked higher, competitive pressure garnered less consideration. We believe this perspective correlates with the relative youth of RTP as a payment rail and the lack of market education around its benefits.
FIs and their representative customer bases are familiar and fairly comfortable with a potentially lengthy process to support the initiation, settlement, and reconciliation of a payment. As a result, FIs haven’t rushed to educate their customers about RTP and the use cases that it can fulfill, including:
This can include medical, payroll, and transportation-related payments. Unlike wire and ACH, the RTP network is available for real-time payments 24/7/365 days a year. Payments can be made during off-business hours, thus preventing the potential for late or excess fees.
This can include account or payment status. Consumers can reduce customer service related fees, while less call volume means lower overhead costs for FIs and/or corporate organizations.
Levvel’s 2020 Real-time Payments Report releases on October 28, 2019. Pre-register to be among the first to read the report.
The RTP network is accessible in that it supports two-way communication in a standard format and within a secure network making the communication of payment and remittance information between sender and receiver more streamlined.
The RTP network supports credit pushes only, which helps to reduce fraud associated with debit risk.
As for where adoption stands two years post RTP launch, market education has yet to keep up with the speed at which technological advancements are being made. Once general consumer education around RTP and its practicality grow, there is potential for competitive pressures among FIs to launch RTP to grow as well.
Our 2020 Real-time Payments Report launches on October 28, 2019. Be among the first to see the latest industry insights, emerging trends, and critical data shaping the future of real-time payments by pre-registering here to have the report delivered directly to your inbox on release day.