Acting NOW to Deliver Faster Payments
When it comes to faster payments, the U.S. has reached a tipping point. Mobile capabilities and other technological advances are changing the payment process and fueling consumer demand for real-time payments. In its recently released report, "Strategies for Improving the U.S. Payment System," the Federal Reserve outlined next steps for enabling faster payments, highlighting the importance of collaboration among payment stakeholders.
Fiserv is moving boldly to make real-time payments a reality while staying mindful of the need for collaboration. The NOW® Network, which Fiserv introduced in 2014, embodies collaboration via connection. The network not only connects everyone that people want to pay – from other people to businesses – it also connects other networks. It’s these connections that make payments move more quickly. Fiserv previously announced connections with the Star® and Pulse® networks for Popmoney® person-to-person payments, enabling real-time person-to-person payments capabilities for financial institutions that are members of those networks. And Fiserv continues to pursue connections with other strategic networks.
Fueled by 24/7 mobile capabilities, demand for faster payments will only accelerate.
Collaboration via connection will drive system changes to enable real-time payment capabilities. Just as ATM networks developed independently before ultimately connecting to better serve consumers, payment stakeholders will need to come together to improve the payment system and facilitate faster payments.
Consumers want to manage and move money at the time they choose. A 2014 McKinsey study commissioned by the Federal Reserve Banks found 70 percent of consumers preferred instant or one-hour payments – and were willing to pay for them. The NOW Network will provide real-time money movement capabilities for person-to-person payments, bill pay and account-to-account transfers. As the network evolves, consumers will be able to move and manage money at the time they choose – instantly, same-day, next-day or on a scheduled future date.
In a world that is moving more quickly than ever, consumers often need to be able to send or receive money in real time. Whether sending money to a friend or family member, paying the rent, or paying a bill, consumers expect the option for their funds to be credited immediately. Fueled by 24/7 mobile capabilities, demand for faster payments will only accelerate.
Next-generation payments will be defined by speed, and consumers and other payment stakeholders will also demand the highest levels of security, convenience, scalability and efficiency. Fiserv intends to deliver a new payment experience through the NOW Network – an experience that enables mass adoption of real-time payments – while pursuing collaboration in the best interest of the industry and consumers.
When people, their money and those they pay are all connected, the payments experience becomes profoundly simple – consumers should only need to know who, how much, and at what speed they want the money to move. It’s time to work together to deliver payments as quickly as people want them.