• How ‘Me2Me’ Became FinServ’s New ‘Sticky —

    Once upon a (very recent) time, if customers needed financial services of any kind, they went to their bank. From investing to storing funds to making payments, the bank offered the total financial services bundle. And that was by design, as Ingo Money CEO Drew Edwards told PYMNTS in a recent conversation. The banks designed their systems, so it was easy to move money into their coffers, but not so easy for customers to move money out or around. It’s sticky, he noted, but in the same way that a fly trap is. However, the rise of FinTechs over the last decade or so has changed the game — because collectively, they’ve broken the bundle. “It started with all the [peer-to-peer] P2P guys who unbundled how we pay each other,” Edwards said. “Then the online lenders rose up and said they could do lending better and faster than the banks. Then came the robo-advisers, which meant you didn’t need an adviser to be an investor. And we came along with ubiquitous mobile remote deposit capture, so now consumers can put their checks into any account they want from a single app in minutes.”
  • Wells Fargo provides corporates with API for sending real-time payments —

    Wells Fargo (NYSE: WFC) announced today that its corporate customers can now send real-time payments through the RTP network via an application programming interface (API), enabling the immediate movement of money and expanding the bank’s faster payments offerings. Wells Fargo previously rolled out capabilities for both retail and wholesale customers to receive payments over the RTP network at the end of 2018. “Our customers want the ability to make immediate payments and receive timely confirmations to run their businesses more efficiently,” said Danny Peltz, head of Treasury, Merchant and Payment Solutions at Wells Fargo. “The ability to send transactions on the RTP network gives our customers yet another option for moving money when and how they want.”
  • The Clearing House releases model agreement to facilitate data sharing —

    The Clearing House has released a Model Agreement to help FIs and fintech companies establish legal terms for the sharing of bank-held consumer data. Developed with input from TCH member banks, non-bank financial institutions and fintechs, the Model Agreement is intended to accelerate the legal review process during negotiations and ensure that key data security requirements are understood. The Model Agreement is meant to provide a common foundation of generally accepted terms as a starting point to facilitate data-access agreements between banks and fintechs, reducing the need to negotiate the same terms each time they enter into an agreement.
  • ACI Worldwide to Deliver Universal Payments Technology Via Microsoft Azure —

    NAPLES, Fla.--()--ACI Worldwide (NASDAQ: ACIW), a leading global provider of real-time electronic payment and banking solutions, today announced a global strategic collaboration with Microsoft via the Microsoft Partner Network to support the payments industry’s rapid adoption of technology deployed in the public cloud. As one of Microsoft’s top 10 global ISV partners in the financial services industry, ACI will support the company’s industry growth and extend the reach of its own market-leading Universal Payments portfolio through Microsoft Azure. The industry has begun to reap the benefits of cloud, including lower total cost of ownership (TCO), increased scalability, speed to market, enhanced development tools, and the integration of platform services such as data analytics and artificial intelligence. The cloud, a vital component of today’s service delivery model, enables banks and other organizations to capitalize on new market opportunities and access new channels. By deploying ACI’s UP solutions through the cloud, as well as via traditional on-premises and on-demand implementations, banks, intermediaries, merchants and corporates can thrive amid the unprecedented digital disruption.
  • HSBC Bank USA now offers business clients the ability to send and receive payments in real time

    NEW YORK--()--HSBC Bank USA, N.A. (HSBC) announced today the launch of real-time payments capabilities on the RTP® network that allow business and institutional clients of all sizes to pay and be paid immediately with enhanced convenience and security. With this latest enhancement in HSBC’s implementation of the RTP network, these clients began sending real-time payments this morning, having been able to receive real-time payments since July 2019. “As digital banking and e-commerce are embraced around the world, people expect to move money just as fast as they are able to check their account balance or buy a new app for their mobile phone. The RTP network is developed by The Clearing House (TCH) and its owner banks, including HSBC. HSBC is using the RTP network to provide business and institutional clients with payment functionality that supports activities such as just-in-time cash management, instant delivery of payroll, and immediate customer refunds. The RTP network is also available to HSBC’s individual customers when receiving payments from businesses and other individuals.
  • Banks see Fed payments proposal opening door to fintech rivals —

    A plan by the Federal Reserve to build its own network to transfer funds quickly has pitted technology firms seeking a foothold in the financial sector against banks that have traditionally dominated the payments business.  Tech firms see the new payment system as an opportunity to get into the payments business, and banks, facing a new rival, are pushing for tight rules on companies moving into banking-like services, according to advocates on both sides of the issue. The Fed in August announced a plan to develop an instant payment system, FedNow, drawing praise and opposition. Big banks, which have their own payments system, are trying to persuade Congress to block the Fed plan.
  • Preparing for 2020: The impact of the cloud on B2B payments —

    By 2020, US business to business (B2B) payments are expected to reach $23.1 trillion according to Deloitte. This is driven by cloud technology, which is accelerating the digital transformation of the payments industry, providing customers with a myriad of convenient payment methods. This shift is occurring because consumers need instant and on-demand access to everything. As incumbent banks have inconsistently delivered in the first instance, fintech firms have entered the market with an intent to disrupt. According to Deloitte, fintech companies now account for around 36% of personal loans originated in the US by dollar volume. Finextra spoke with Nadav Sharir, VP engineering at Behalf, about the company’s recent report ‘Cutting Edge B2B Payment Trends in 2020’ and how the cloud is driving and accelerating transformation of the payments industry.
  • U.S. Federal Reserve Says Stablecoins Might Aid Financial Stability —

    The U.S. Federal Reserve published its latest Financial Stability Report and its assessment of stablecoins is surprisingly positive. Stablecoins as a class include dollar-pegged cryptocurrencies like Tether, which are backed by traditional assets. Though the Reserve doesn’t drop names, it is mainly concerned with stablecoins that have global relevance. The report is surprisingly optimistic: it suggests that stablecoins could provide a “new medium of exchange,” a complement to existing payment systems, and a solution to crypto price volatility. But although the Federal Reserve admits that stablecoins have potential, it warns that stablecoins could have unintended consequences.
  • Getting RTP’s Roadmap, Consumer Demand For It In Sync —

    For real-time payments, the infrastructure is there, and now comes the demand.  To that end, according to Craig Ramsey, head of real-time payments at ACI Worldwide, the real-time payments focus in the United States through the present day has been on consumer propositions — sending money instantly between parties for groceries, restaurant bills and other expenses. And it is the consumer’s expectation of payments done with speed, account to account, that will create ripple effects for banks, merchants, corporates and corporate transactions. Ramsey said the growth in Zelle and Venmo helps illustrate the emergence of a mindset that states, “as a consumer I can pay my bills when it suits me. I don’t have to think about the bank clearing and settlement cycle. I can decide I want to pay my credit card bill at a particular time — maybe at the last possible moment.”
  • Nacha, US Faster Payments Council launch Faster Payments Playbook —

    Nacha and its Payments Innovation Alliance, jointly with the US Faster Payments Council have launched the Faster Payments Playbook. The Playbook is a co-branded industry resource developed by the two groups that will help stakeholders level-set on faster payments developments, assess the benefits and requirements of faster payments, and navigate the process of developing a faster payments strategy. While the current iteration of the Playbook focuses on developing a faster payments strategy for financial institutions, the next version will focus on business end users.
  • For Marketplace Platform Payments Experiences, Is It Back To Basics? —

    It’s easy to get caught up in the hype of new sharing economy platforms. “The Uber of furniture,” P2P closet-sharing and crowdshipping all certainly sound innovative. There’s a lot of competition to capture the $6 trillion in online payments for U.S. digital and physical goods that’s expected by 2024. Marketplaces and their partners want to satisfy consumers who are comfortable with the convenience of online shopping. But not all emerging platform economy trends are attention-grabbing. Many are more operational in nature, and intended to give consumers more choice. What new initiatives might lack in excitement, they make up for in shifting the payments conversation. It might be time to get back to the basics. In the latest Payments and the Platform Economy Playbook, PYMNTS analyzes how marketplaces are innovating their payment experiences and how they are adding new features to draw buyers and sellers away from competing platforms.
  • Community Banks Weigh Real-Time Payment Options as Fed Goes Slow —

    The Federal Reserve’s slow wind up to deploying real-time payments could prompt community banks to join a network owned by their big-bank competitors. While most community banks would prefer to work with the Fed’s planned real-time payments system, some don’t want to wait three or four years for the project to launch—especially with their larger competitors and fintech firms already offering those services to consumers and small businesses. Community banks that want to stay viable “are going to have to come to grips with the real-time payments decision sooner or later,” said Preston Kennedy, chairman of the Independent Community Bankers Association and president and CEO of Zachary Bancshares Inc., a community bank in Zachary, La.
  • Should Banks Wait for FedNow? —

    Since the announcement of FedNow, the Federal Reserve’s real-time payment network, many financial institutions are facing the decision of whether to wait for the Fed to deploy FedNow, which might take four plus years, or to seek other solutions now. Some community banks like Avidia Bank are integrating to TCH, while others will wait for the Fed and potentially look to other faster payment solutions like debit push payments and same-day ACH to offer some faster, if not real-time, transaction options in the meantime. As reported in Bloomberg Law: Many community banks aren’t seeing significant demand for real-time payments just yet, putting their business needs in sync with the Fed’s time frame, said Julie Hill, a professor at the University of Alabama School of Law.
  • ‘Simple’ Will Be Instant Payments Breakthrough Innovation —

    When the history of the paper check is written someday, scholars will not note it was the best payments form, nor the fastest, cheapest or most beloved. Paper checks in the closing days of the 2010s are not only less than beloved, they are also widely disliked. Consumers almost never write them and don’t really enjoy getting them, and businesses don’t particularly like cutting them since they’re expensive, inefficient and present a host of security risks. But what the paper check lacks in popularity it makes up for in sheer persistence — after a decade of proudly proclaimed plans to “kill the check,” the check just keeps on living. And for a very simple reason, Ingo Money CEO Drew Edwards told Karen Webster in a recent PYMNTS interview: the check works consistently if not brilliantly. It works particularly well in what Edwards called the “ad hoc” payments market wherein large enterprises have to make a one-time payout or series of payouts to a consumer or another business.
  • Can Real-Time Data Render Credit Scores Obsolete? —

    The rise of faster peer-to-peer (P2P) payment services has had an unintentional ripple effect for businesses, banks and merchants. With customers able to send money to family and friends with a few taps of their smartphone, frustrations can arise when businesses are unable to deliver similar speed. As a result, firms that are lagging behind in faster payments investments could miss out on the full opportunities available in the global business-to-consumer (B2C) solutions market. Several global financial institutions (FIs) appear to understand the opportunities and missed opportunities that faster payments can provide. The new Faster Payments Tracker highlights the latest faster payments developments from several global markets.
  • Nacha’s Payments Innovation Alliance and the U.S. FPC Launch the Faster Payments Playbook

    Nacha and its Payments Innovation Alliance, jointly with the U.S. Faster Payments Council (FPC), launched the Faster Payments Playbook, an online educational and decisioning platform that will help banks and credit unions develop a faster payments strategy from concept to reality. The Playbook is a co-branded industry resource developed by the two groups that will help stakeholders level-set on faster payments developments, assess the benefits and requirements of faster payments, and navigate the process of developing a faster payments strategy. While the current iteration of the Playbook focuses on developing a faster payments strategy for financial institutions, the next version will focus on business end-users. The Alliance – comprised of a diverse membership of nearly 200 organizations including corporates, third-party processors, fintechs and financial institutions – is playing a crucial role in helping organizations gain clarity on the topic of faster payments. The Faster Payments Project Team was formed in June 2018.
  • Facebook News: Amid Anti-Trust Concerns, Social Media Giants Consolidates Payments Under New Banner

    Facebook (FB) has decided to consolidate its various payments to a single platform, Facebook Pay, that will reach across Facebook, Messenger, Instagram and WhatsApp, the company announced Tuesday, in the latest step to integrate its services and make it easier to move between apps. Facebook Pay will allow users who decide to set up the app to add a preferred payment method with which to make purchases and payments on the apps instead of having to re-enter payment information each time a transaction is initiated. Users will be able to view payment history, get real-time customer support and update settings in one place. “Facebook Pay will make these transactions easier while continuing to ensure your payment information is secure and protected,” Deborah Liu, Facebook vice president of marketplace & commerce, said in a blog post. The system will encrypt credit card and bank account numbers. The system also will be monitored for fraud. As an extra layer of security, users can add PINs or use the biometrics available on their phones.
  • Smoothing the way for real-time frictionless payments —

    Corporate treasurers are experiencing more payments volume than ever before, with billions of transactions executed daily across a variety of channels, currencies, and countries. Enhanced formats are emerging at lightspeed, and organizational structures are shifting with buyouts/expansions and the adoption of multi-system environments. The ultimate end-goal of corporate payments efficiency is real-time payments with straight-through processes and fewer errors along the way. Ideally, corporate payments would be executed in a similar way to many B2C transactions, providing a frictionless experience. Take Uber for example, the rideshare app has become ubiquitous, at least in part, due to the ease of paying for a ride without ever having to get out cash or a credit card. Uber passengers expect everything to be completed for them beforehand: no muss, no fuss. Uber’s back end processes allow a payment method to be pre-loaded, and for the ride fare to be pre-agreed before the driver and rider ever meet. In essence, taking an Uber is a frictionless experience.
  • Faster Payments Readies Global Payroll For A Paradigm Shift —

    Increasingly, the gold standard for payments is invisibility. Platforms and payment service providers are seeking digital, integrated payment experiences that are so seamless, neither the payee nor payer take much notice that a transaction has even occurred. Such is a standard that is making its way to the payroll space. Employees want to be paid on time, accurately, and without any additional administrative burden, requirements that have made direct deposits and other electronic payroll methods popular choices over the paper payroll check. On the employee side, this transaction may seem seamless and straightforward — when it goes right. But on the back end, said Eynat Guez, Papaya Global co-founder and CEO, complexities abound. Time report collection, data aggregation across different formats and departments, data consolidation for processing, tax withholdings and benefits calculation must all be done, approved, and processed for on-time payroll.
  • Fed's faster payments network likely ahead of schedule: Powell

    WASHINGTON — Federal Reserve Chairman Jerome Powell told members of Congress Thursday that he believes the central bank's faster payments system could be operational in “three or four” years rather than the five years that the agency initially projected. Speaking before the House Budget Committee, Powell said the FedNow system was a “top priority” for the agency and he expects it to be completed ahead of schedule. “We don’t think it will take five years,” Powell said. “We’re thinking three or four. We want to do it right. It’s a complicated project, it’s very important, it’s a top priority for us. Getting it right the first time is key. So we want to have it up and running within three to four years.” (Subscription required.)