GREENWOOD ON THE COST EFFICIENCIES OF REAL-TIME PAYMENTS
Real-time payments ( RTP ): The benefit it offers is in the name itself – sending and receiving money instantly . While the perk of speed is the first thing that springs to mind whenever someone says RTP , it ’ s worth noting that cost efficiencies are a big attraction in RTP adoption because it lowers the cost of payment acceptance and eliminates chargebacks .
Greenwood says : “ If you were to imagine in 1955 the best and the simplest way to implement payments – before the advent of cards ? RTP and account-to-account is exactly it .
“ Why are we still using an alien card object , and a third party scheme , to move money across intermediaries , when an API call moves money directly from your bank account to wherever you want to send it .
“ It ’ s the way that payments should have always been . It eliminates the cost and time of processing through intermediaries , and the costs of chargebacks and fraud , and is technologically superior in every way .
“ So , not only do RTP providers offer speed , but they are more secure and cost-effective too .”
50 September 2023