Welcome to Innovating Payments Top 3 News Headlines for the Week of Nov. 27. According to PYMNTS, Twitter CEO Elon Musk filed with the Financial Crimes Enforcement Network (FinCEN) to begin processing payments. There's widespread agreement, says PYMNTS, that Musk wants to make Twitter into an all-in-one super app that handles payments. Meanwhile, to mark the fifth anniversary of real-time payments in the U.S., The Clearing House (THC) and Jack Henry launched a flurry of statistics that sheds new light on the Real-Time Payments Network®. Also of note, FinTechs are driving the adoption of real-time payments, says Payments Journal. However, there has been some reluctance to jump on board with TCH's RTP Network, which some attribute to the launch of the Federal Reserve's FedNow Service(SM) in 2023.
Read on to learn more.
1. Musk Says Payments Will Be Part of Twitter 2.0 (PYMNTS)
Twitter CEO Elon Musk said his company will make a second attempt next week at launching a verification service, following a botched launch that saw a number of users impersonating celebrities and companies. Musk mentioned the new color-coded verification system Saturday (Nov. 26) in a company meeting, slides from which he shared on the platform. The presentation also included a vision of "Twitter 2.0" that includes things like "advertising as entertainment," long-form tweets, encrypted direct messages, and a blank side labeled "payments." Read more.
2. Real-Time Payments In U.S. Marks Fifth Year - FedNow Coming In July (Forbes)
To mark the fifth anniversary of real-time payments in the U.S. The Clearing House (TCH) and Jack Henry launched a flurry of statistics which cast a bit of an obscuring haze over the topic. TCH says its RTP network reaches 62% of all demand deposit accounts in the U.S. and 85% of insured depository institutions have technical access to the network through more than 20 technology solutions providers, including Jack Henry & Associates, FIS, Fiserv, COCC, Finastra and Shazam. Read more.
3. Fintechs Are Driving Adoption of Real-Time Payments (Payments Journal)
Instantaneous movement is technically impossible, but real-time payments get pretty close. Real-time payments (RTP) are financial transactions that are settled almost instantaneously. They use separate digital network "rails" to process payments 24/7 every day of the year. Real-time payments are fast, which is helpful to companies and individuals that either want to pay or receive funds on a moment's notice. Read more.
How might Musk's announcement saying payments will be a part of Twitter 2.0 impact your financial institution? Real-time payments are quickly becoming table stakes, particularly with the launch of FedNow in 2023. What is your organization doing in the real-time payments space? Finally, what opportunities does your institution have to partner with FinTechs to meet evolving customer demands?
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.