Faster payments

There are many motivations for implementing faster payments, such as paying gig economy workers after each job, sending funds overseas, or improving insurance payouts. In all of these examples, the demand comes from the payments recipient.

The reasons for banks to not embrace faster payments schemes are quickly dwindling. But many are still watching from the sidelines.

Arguments that the central bank should develop its own system for faster payments ignore current market realities, says The Clearing House, which has developed its own network.

A Toronto fintech is seeking share for distinct niche — and it thinks a three-year-old technology decision by Visa may be the ticket to its success.

CV Systems’ COO Randy Schmidt, BHMI Chairman Jack Baldwin and Mickey Goldwasser, vice president of Payrailz, discuss challenges and opportunities, for faster payments, back office gaps, and cross-industry cooperation.

Wells Fargo and the denial stage of recovery; community bankers alarmed after big banks backtrack on faster-payments pricing; credit card, auto loan delinquencies hit seven-year high; and more from this week's most-read stories.

Arguments that the central bank should develop its own system for faster payments ignore current market realities, says The Clearing House, which has developed its own network.

In 2016, a big-bank consortium said that it would charge the same prices to all institutions, regardless of their size. But now the group has added a large caveat to that pledge.

The speed of technological change is forcing Britain’s retail payments authority Pay.UK to redesign its core infrastructure.

As the faster-payments movement gradually increases the speed of transfers, the use cases for immediate debit push payments are becoming more specialized.

Randal Quarles, a senior Fed official and chair of the Financial Stability Board, sparked debate with a speech about the risks and rewards of companies like Amazon, Facebook and Apple entering the financial system.

The Clearing House announced moves to attract community banks and credit unions to its real-time payments system. Smaller depositories have generally been reluctant to sign up with what is seen as a large-bank effort.

Seeking a way to help its employed shoppers manage their money, the Instacart grocery payments and delivery service is partnering with e-commerce payments provider Stripe to offer an Instant Cashout option.

Despite some significant advancements in the past two years, rifts are already developing in the U.S. move to faster payments.

Nacha's request to the Fed to extend submission times for its Same-Day ACH network was far from routine for two organizations that had worked together for decades.

The new U.S. Faster Payments Council states a clear mission — to promote faster payments in the U.S. But this new entity could butt heads with the Federal Reserve if it thinks the Fed isn't moving fast enough.

In addition to conducting monetary policy and regulating banks, that the EU’s central bank should try to “drive innovation” in payments, writes Eric Grover, a principal at Intrepid Ventures.

Jack Henry & Associates has overcome an obstacle that delayed banks and credit union integration with Zelle, with a hub to streamline the onboarding process. But the new system’s first bank doesn’t go live until May, and the hub won’t hit full stride until next year.

After more than two years of successful operation in delivering Same-Day ACH payments, Nacha's request to add a third processing window has been delayed by the Federal Reserve, which says it has to obtain public comment on the concept.

Our annual Most Influential Women in Payments feature, now in its seventh year, highlights the women who are creating change and opportunities in the payments industry. For the first time, the editors of PaymentsSource have also recognized one woman for lifetime achievement.