The payments industry continues to feel the aftershocks of the global pandemic as payment methods to artificial intelligence and real-time payments progress on an accelerated trajectory. In this week's issue, we look at how payment methods evolved in the new normal, API and its impact on the payments industry, and how an on-demand payment company joined forces with The Clearing House and PNC to provide real-time employee payments of earned income over the RTP Network.
Read on to learn more.
This Week's News
1. A Rapid Evolution of Payment Methods in the New Normal (Payments Journal)
The Worldpay global payments report projected early 2020 that the cash share of in-store payments would fall from 30% in 2019 to 19% in 2023. But now, its 2021 edition shows that the cash share of payments has already plummeted to 20% in 2020. This is arguably the most dramatic shift in payments history. Similarly, according to a Visa Back to Business study, in 2020 78% of global consumers changed the way they pay, and 70% used a new payment method for the first time. Here is a look at how 2020 catapulted payments years ahead of what projections predicted. Read more.
2. APIs: Integrate and Innovate (CUInsight)
Payments innovation and APIs come hand in hand. But having APIs is no longer enough. To ensure APIs result in a usable and viable service or product, they must be well-documented. In fact, the documentation must be as good as the functionality of the API.
Today, an API platform needs to include an API gateway and catalog, developer portal, partner program, marketplace, and real-time events notification. It also needs to provide a central access point to integrate with other solutions via APIs, so financial institutions and fintech partners can easily integrate, leverage, and deliver solutions across any digital channel, and differentiate their experiences. Read more.
3. DailyPay, PNC, TCH Partner on Real-Time Payments of Earned Income (PYMNTS.com)
The on-demand payment company DailyPay is working with PNC Bank and The Clearing House to offer real-time employee payments of earned income over the RTP network. The solution gives users "power of choice and control" over their earned income and provides instant delivery, along with receipts to the sender confirming delivery, according to the news release. It added that a key function of real-time payments for DailyPay users is the ability to get wages instantly without disrupting an employer's payroll process. Read more.
How has the evolution of payment methods impacted your financial institution? Is your bank using APIs? Tell us how. We welcome your thoughts/comments on these news items. Reply here or reach out to me directly. And stay tuned for next week's issue!
AUTHOR: Joe Casali, AAP, NCP
Executive Vice President
As the EVP of Payments Innovation for NEACH, Joe focuses on exploring innovative solutions and technologies that will help position members for success, both now and in the future. Connect with Joe to read more of his blogs, articles, and posts.