As consumers today, we all demand instant gratification. No surprise, even payments have gone real-time now. Reports say that the real-time payments market in Europe will grow at a CAGR of 24.3% in the next five years. But what makes them an ideal choice? And how do they add value to your business? Read on to know more.
What are real-time payments?
Real-time payments are instant payments that can be made 24×7 round the year. They are made via payment networks that help you move money between accounts in real-time. An example of this is a SEPA Instant Credit transfer, which lets you transfer up to €100,000 at a time, within seconds. Real time payments are quick, secure, and simple, making them a great choice for businesses and people. You can now transfer money quickly and easily between bank accounts or make retail payments within one country or across borders.
Real-time payments are a clear winner over physical methods like cheques, which can get delayed or lost. This makes them a great tool for cross-border payments, ensuring that payments are settled on time. No longer do you have to worry about late payments or fraud.
Real-Time Payments Are Here to Stay
The rise of open banking and newer messaging standards such as ISO 20022 are making real-time payments a reality in Europe. Currently, the SEPA Instant Credit Transfer (SCT Inst) in the EU, and Faster Payments in the UK, are the active RTP systems in the region. Nordic’s P27 network is expected to go live this year. The rapid growth of mobile commerce is also adding to the growth of such payments in Europe. From digital wallets to BNPL, e-commerce merchants are now offering real-time payments to consumers in the region. This growing popularity has given a strong impetus for the development of the right payment infrastructure in the region. The launch of TARGET Instant Payment Settlement (TIPS), P27, Faster Payments, and SEPA Instant Credit Transfer have been strident steps taken in this direction.
How real-time payments help you create more value?
Cheaper than traditional card payments – Real-time payments costs less than traditional card payments as you save on processing costs. Hence, you don’t have to pass the cost to the customer, overall lowering costs and creating a mutual win-win.
More convenient – Real-time payments are easier and more convenient for customers. And for you. They are instant and contactless and offer them the option to pay on the go. This leads to a seamless payment experience – whether it be shopping, dining, or hailing a ride.
Faster than conventional payment methods, especially x-border – Real-time payments make payments much faster, especially in cross-border e-commerce. No more waiting for cheques to clear or for banks to clear payments, no more delayed payments. This means quick and easy settlement and happier suppliers.
Lower fraud risk and more secure – These payments are highly secure as they use tighter security measures, such as multi-factor authentication and more encryption. This ensures buyers and sellers are safe from fraud, identity theft and data breaches.
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How can Novalnet Help?
If you want to set up real-time payments, we can help. As trusted advisors to Europe’s leading brands on all things payments, our state-of-the-art technologies and methods help businesses like yours accept payments globally. From our instant payment plug-ins to our AI-based risk management tools, we have the resources to get you up and running with your payments in a short time, and with zero hassle.
Reach out to us today to know more.
Jose Augustine is the Chief Business Development Officer at Novalnet with extensive experience in European payment industry and a knowledge powerhouse.