The Era of Real-Time Payments Is Dawning in the U.S. With the Rollout This Year of New Processing Rails

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Mercator Advisory Group releases new research with a focus on use cases versus business cases for real-time payments.

One of the 2 exhibits included in this research report

Many use cases have been identified that appeal to consumers and businesses alike. What is unknown, at this early stage, is whether those positive use cases will drive enough transaction business and profitability to justify the investment.

After years of effort by the FedPayments Improvement teams and private industry, faster payments rails are beginning to be launched in the United States. The platforms that are finding their way to market do not meet all of the desired outcomes of the Federal Reserve’s published guidance, but they have enough value for now, with further capabilities anticipated to evolve over the next several months.

A new ForeSight report from Mercator Advisory Group evaluates what might be the best use cases and where the business case may also align for participants in the payments industry.

Download this complimentary ForeSight report, Justifying Real-Time Payments in the United States, for free.

“The industry is excited at the prospect of truly new payments options. It comes at a cost, however. Many use cases have been identified that appeal to consumers and businesses alike. What is unknown, at this early stage, is whether those positive use cases will drive enough transaction business and profitability to justify the investment for financial institution. Some banks and credit unions have commented that they wish that real-time payments would be a regulatory mandate so they could skip the difficult exercise of trying to justify the cost,” commented Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group, and author of the report.

Highlights of the report include:

  • Overview of the Federal Reserve’s expectations for real-time payments in the U.S.
  • An overview of the real-time payments market participants
  • Discussion of markets players’ revenue opportunities
  • Description of probable use cases and the benefits the end users may derive
  • Why real-time payments is a long-term play and short-term profit will be elusive

This Foresight has 9 pages and 2 exhibits.

Companies mentioned in this report include: ACI, FIS, Fiserv, JackHenry, JP Morgan, Mastercard, and The Clearing House.

Members of Mercator Advisory Group’s Debit Advisory Service have access to these reports as well as the upcoming research for the year ahead, presentations, analyst access, and other membership benefits.

Download this complimentary ForeSight report, Justifying Real-Time Payments in the United States, for free.

Please visit us online at http://www.mercatoradvisorygroup.com.

For more information and media inquiries, please call Mercator Advisory Group's main line: 1-781-419-1700, send email to media(at)mercatoradvisorygroup.com.

Follow us on Twitter @ http://twitter.com/MercatorAdvisor.

About Mercator Advisory Group
Mercator Advisory Group is the leading independent research and advisory services firm exclusively focused on the payments and banking industries. We deliver pragmatic and timely research and advice designed to help our clients uncover the most lucrative opportunities to maximize revenue growth and contain costs. Our clients range from the world's largest payment issuers, acquirers, processors, merchants and associations to leading technology providers and investors. Mercator Advisory Group is also the publisher of the online payments and banking news and information portal PaymentsJournal.com.

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Karen Yetter
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