Welcome to NEACH's Innovating Payments Top 3 News Headlines, which features a roundup of the most pressing industry developments. In this issue, Richard Erario, Executive Vice President, Head of Global Treasury Management for U.S. Bank, explains how Request-to-Pay benefits consumers, businesses, and financial institutions. Learn, too, why banking executives named real-time payments their second-highest priority, after P2P. And with more and more consumers turning to account-to-account (A2A) payment methods, such as peer-to-peer (P2P) payment apps, discover what you need to know to keep pace.
Read on to learn more.
1. U.S. Bank: Request-for-Pay Features Help Billers Tackle Payments Visibility Issues (PYMNTS.com)
Request-to-pay features have emerged with promises to benefit merchants, financial institutions, and billers. The message exchange service allows payees or creditors to collect a payment from a debtor or payer. As a result, payees can benefit from increased control over the payment process, accelerate incoming payments, and save time chasing debtors. But experts say it will take more than updating Automated Clearing House (ACH) networks to advance digital services and products, including digital wallets. Instead, real-time payments must enable digital channels. Read more.
2. Preparing for the Future of Real-Time Payments (Payments Journal)
To keep up with customer expectations, institutions must modernize their payments strategy and ensure security, speed, and ubiquity. Real-time payments (RTP) meet all three of these expectations as a critical facet of a modern payment hub model. Naturally, banking executives named real-time payments as their second-highest payments priority in CSI's 2021 Banking Priorities Executive Report, after P2P, a related technology. And as the FedNow pilot program continues, the future looks bright for RTP and the often-overlooked possibilities it will open. Read more.
3. Bank of the West: How Merchants Can Keep Pace with Emerging A2A, P2P Payment Preferences (PYMNTS.com)
Consumers have always favored swifter payments, and the value they place on speed and convenience has increased since the global health crisis began. This translated into a growing interest in next-generation payment methods that can make transactions as instant as possible, wherever customers shop. More consumers are turning to account-to-account (A2A) payment methods, such as peer-to-peer (P2P) payment apps, when shopping at physical stores, for example, said Hisham Salama, chief digital officer and executive vice president for Bank of the West. Read more.
What are your thoughts on request-for-pay functions for real-time payments? How is your financial institution preparing for real-time payments? What is your organization doing to keep pace with emerging payment preferences?
Check back soon for our next issue, which will again highlight the industry's most need-to-know developments. Until then, visit us online at Innovating Payments.
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.