Is the shift toward real-time payments inevitable?

Real-time payments (RTP), the first new payment format in 40 years, is gaining considerable industry traction, despite being in operation just a little over two years. While RTP technology is still relatively new and the volume of payments on the RTP network still pales in comparison to Automated Clearing House (ACH) and credit and debit cards, we can’t ignore that it is the fastest growing segment in the payments space. Some prognosticators predict that moving money in real time will be the expectation, not the exception.

The theme of inevitability is frequently used in RTP discussions. Consider these recent statements:

• Financial institution attorneys group SW&M states, “Consumers and businesses demanding faster payments is leading to […] the inevitable industry-wide adoption” of real-time payments.
• According to a PaymentsSource article, “Financial institutions must start making significant changes to prepare for the inevitable shift the banking industry is making towards real-time payments. If not, they will find themselves unprepared and could lose ground to other banks and technology providers that move faster to seize the opportunity of early market leadership.”

 

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