Real-Time Payments: Dispelling the Myths

Faster payments are a hot topic, especially since the FED’s research on improving the US payments system identified “improved settlement speed” as a key objective. Whether it’s near real-time, or real-time payments, there are misunderstandings and myths surrounding this topic. Celent’s recent report Real-Time Payments: Dispelling the Myths, declares that some of the myths surrounding real-time payments are not just wrong on a couple of details, but completely wrong.

Myth: Real-time payments are limited to a handful of countries.
Reality: There at least 35 countries with at least one system.

Myth: Real-time payments are a recent innovation.
Reality: Some systems are more than 40 years old.

Myth: Adoption of real-time systems is driven by regulatory pressure.
Reality: While this is true in some countries, there are many examples where market demand has driven the implementation.

Myth: Real-time payments will cannibalize other revenue streams.
Reality: It may impact some payment types, but the overall opportunity is an additional revenue stream.