Welcome to Innovating Payments Top 3 News Headlines for the Week of Dec. 11. In today's issue, the RTP® Network celebrates its 5th anniversary by increasing the availability of new functionality for financial institutions and their customers. But the speed and ease of use that make faster payments so popular with consumers also make them attractive for fraudsters, forcing financial institutions to put fraud prevention at the forefront. Still, with the surge in instant payments, businesses and financial institutions need to take steps to make sure they're not left behind.
Read on to learn more.
1. RTP® Network Celebrates 5-Year Anniversary (The Clearing House)
The RTP® network, the nation's newest real-time payments system that is operated by The Clearing House (TCH), marked its five-year anniversary by increasing the availability of new functionality for financial institutions and their customers, and highlighting the increasing activity on the network, including higher volumes, expanded technical access, and more bank and credit union participants joining the network each week. As the RTP network matures, TCH continues to roll out new functionality to increase the capabilities for financial institutions and their customers. Read more.
2. Instant Payments Forces Banks to Put Fraud Prevention at the Forefront (PYMNTS)
The speed that makes instant payment apps such as Zelle and Venmo popular also makes them attractive tools for fraudsters. Bad actors defrauded nearly 18 million Americans through digital wallets and peer-to-peer (P2P) payment scams in 2020, for example. There is currently much debate in the United States on who bears financial liability when instant payment fraud occurs. In the United Kingdom, the Payment Systems Regulator (PSR) intends to move forward with plans discussed last year to create regulations around mandatory reimbursement of losses from authorized push payment fraud. Read more.
3. How Instant Payments Are Taking the Industry by Storm - And Why Businesses Don't Want to Get Left Behind (Payments Journal)
Instant payments, or real-time payments depending on your preferred nomenclature, have come a long way in the U.S. There was a time when the only "instant payment" was the exchange of physical cash from one person to another person in close proximity. However, the past few years have seen payments innovation go into hyperdrive; arguably these last five years have seen more payments innovation than in the last five decades combined. Read more.
As the RTP Network matures, how is your financial institution taking advantage of the new functionality? What is your financial institution doing to mitigate risk with instant payments? Finally, what steps is your financial institution taking to help businesses take advantage of emerging opportunities in the instant payments space?
Check back soon for our next issue, highlighting the industry's most pressing and 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.