Banks have an opportunity to seize share against alternative payment providers in real-time payments, according to new FIS-funded research from Ipsos Vantis.
Real-time payments resonate with consumers, and both senders and receivers consider immediate availability of funds to be very important, the research says. For overseas money transfers, 80% of users say it's important for recipients to be able to use the money sent to them immediately. For other payment types, 58% of account-to-account users and 41% of person-to-person users want to have immediate access to funds.
Banks can benefit from their incumbency, particularly in foreign transfers, where there is a $1.1 billion revenue opportunity for U.S. banks surrounding outbound foreign money transfers, the researchers said, noting that a majority of consumer view their financial institution as the first choice for real-time payment services.
Mobile and online are also important. Consumers said they would use real-time payments for a significant portion of their transactions, if the function was available through online or mobile banking. Online payers who currently use expedited payments estimate they would use real-time bill payment via their online or mobile banking app for 71% of their expedited bill payments, the research says. For person-to-person payments, nearly as many Gen Y respondents, or consumers aged 18 to 33, prefer to use mobile phones to make real-time payments as those who prefer computers and laptops. Also, four out of 10 survey respondents who use outbound foreign money transfer and person-to-person services say they want to be able to access real-time applications through their mobile phones.
Financial institutions and other payment companies are expanding their ability to process payments faster. PNC is working with Fiserv to deploy the tech company's
