Real-time payments (rtp) have long captivated financial sector insiders, but they are increasingly capturing the attention of a wider audience in today’s expanding digital economy.
Payments in real time are not a new concept. In the financial industry, the Zengin System, the world’s first rtp payments device, was released in Japan in 1973. Bilateral communication through integrated information flows, instant payment confirmation notifications, and settlement finality results in a more efficient payment journey. With real-time payments, financial control, cash positioning, and liquidity management are now possible.
The advent of mobile wallets and rtp payments is one of the most crucial transformations the world is witnessing right now: both have the potential to produce a big structural change in the competitive environment and the way market operators should be thinking about their strategy.
According to ACI Worldwide’s March 2023 research, more than 70 countries on six continents currently accept real time payments, with $195 billion in transaction volume in 2022 – a 63% increase year on year.
Why? Because modern clients do not have the luxury of waiting two business days for a payment to be processed. People expect constant, instant access to their bank. Half of all banking clients use a website or mobile app at least once a week, and three-quarters utilize digital payments gateway in some capacity.
Meeting customers where they do business is critical. And after you’ve done that, you’ll be able to truly impress them. It’s simple to earn long-term business by demonstrating to your consumers that you’re thinking five steps ahead of their demands.
High customer retention rates suggest satisfied consumers and can save you money.
According to the Harvard Business Review, getting a new client might cost up to 25 times more than keeping an existing one. Increasing your retention rate by only 5% can result in a 95% boost in profitability.
With the instant payment sector constantly evolving, maintaining strong retention rates may be difficult. That is why, in the future of banking, being able to act and respond swiftly to a variety of circumstances is more important than planning for one single feature that is in demand.
This covers client wants and expectations, as well as market trends, but it also involves being prepared for unexpected global events such as Covid-19. Aspire is here to help you with a flexible solution, such as Finastra’s Fusion Payments To Go, that enables real time payments and transfers worldwide, among other things.
When combined with open banking innovations, real-time payments enable a scalable, cost-effective cloud solution that generates new income streams and provide clients with goods and services they didn’t realize they needed. Aspire can enable organizations to develop a customized payment ecosystem that will extend customer interactions by providing built-in microservices and open APIs that link into current financial systems.
Furthermore, we use an agile deployment strategy to implement projects, enabling rapid flexibility and response to change in the ever-changing RTP scene. Adopting Fusion Payments To Go can help you stay ahead of market and consumer expectations by deploying a variety of configurations tailored to the needs of both their financial institutions and their consumers.
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