Banks on track for faster payments in 2016
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New data from the Electronic Payments Association (NACHA) indicates that most major banks are on track to meet the target September 23 deadline for implementing same-day ACH.
When speaking with 22 of the top 25 ACH-originating institutions, NACHA found that 95% will offer their clients same-day ACH by the end of 2016, largely to offer payroll and same-day business-to-business (B2B) transaction services. The financial institutions also plan to offer expedited bill pay and peer-to-peer (P2P) transfer services.
The Faster Payments Task Force has been working with financial institutions to help with implementing same-day ACH in the US. The Fed recently announced plans to have McKinsey assess faster payments implementation solutions based on ubiquity, efficiency, safety and security, speed, and legality.
And implementing same-day ACH will help the US catch up with its peer nations — currently, transactions in the US often take multiple days to clear, but countries like the UK have been offering real-time or same-day payments since 2008.
The world of payments is rapidly evolving, and consumers and companies alike are constantly trying to stay ahead of the pack in order to understand the future of this industry.
Evan Bakker and John Heggestuen, analysts at BI Intelligence, Business Insider's premium research service, have compiled a detailed report on the payments ecosystem that drills into the industry to explain how a broad range of transactions are processed, including prepaid and store cards, as well as revealing which types of companies are in the best and worst position to capitalize on the latest industry trends.
Here are some key takeaways from the report:
- 2016 will be a watershed year for the payments industry. Payments companies are improving security, expanding their mobile offerings, and building commerce capabilities that will give consumers a more compelling reason to make purchases using digital devices.
- Payments is an extremely complex industry. To understand the next big digital opportunity lies, it's critical to understand how the traditional credit- and debit-processing chain works and what roles acquirers, processors, issuing banks, card networks, independent sales organizations, gateways, and software and hardware providers play.
- Alternative technologies could disrupt the processing ecosystem. Devices ranging from refrigerators to smartwatches now feature payment capabilities, which will spur changes in consumer payment behaviors. Likewise, blockchain technology, the protocol that underlies Bitcoin, could one day change how consumer card payments are verified.
In full, the report:
- Uncovers the key themes and trends affecting the payments industry in 2016 and beyond.
- Gives a detailed description of the stakeholders involved in a payment transaction, along with hardware and software providers.
- Offers diagrams and infographics explaining how card transactions are processed and which players are involved in each step.
- Provides charts on our latest forecasts, key company growth, survey results, and more.
- Analyzes the alternative technologies, including blockchain, which could further disrupt the ecosystem.
To get your copy of this invaluable guide, choose one of these options:
- Subscribe to an ALL-ACCESS Membership with BI Intelligence and gain immediate access to this report AND over 100 other expertly researched deep-dive reports, subscriptions to all of our daily newsletters, and much more. >> START A MEMBERSHIP
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The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of the payments ecosystem.