SWIFT have just released a white paper on the global “Real-Time Retail Payment Systems (RT-RPS) landscape, see here, which concludes that: the case for real-time is increasingly apparent; the growth in RT-RPS is strong with countries taking different approaches; competition between providers will be based on customer services; and that SWIFT’s role will be to provide standards, interoperability and clearing infrastructure. This fascinating report contains important analyses and data.

Types of payments suitable for real-time?

An analysis by SWIFT and Boston Consulting Group in 2014 concluded that “some, but not all, payment types may benefit from, or be suitable for, real-time availability and confirmation of funds transfer”, see chart below:

Source & Copyright©2015 - SWIFT 

The report found, that the study showed, “a strong or a very strong case for: 

• the immediate funds availability and immediate confirmation for large-value purchases, across P2B (e.g. houses and cars) and B2B segments (e.g. one-off invoices) 
• the immediate funds availability and immediate confirmation for urgent P2P money (remittance) transfers between individuals, and for B2B urgent invoice payments in order to optimise working capital 
• the immediate notification for P2B e/m-commerce, with a medium case for immediate funds availability for both physical purchases (e.g. books) and digital goods (e.g. online newspapers, documents, games, music) 
• the immediate notification at P2B point of sale (POS), but a weaker case for immediate funds availability.

The case is weaker for immediate funds availability and confirmation for P2B bill payment, including direct debits, and for B2P salaries and pensions. This is not surprising as these payments are typically scheduled in advance, on a defined date or with a defined frequency, and the incremental value of having the payment transacted on the predetermined date in real-time is, arguably, marginal. 

For merchants, the survey also revealed that the desire for real-time is supplemented by the need for convenience (introduction of new mobile POS and new applications, for example Apple Pay), for cost effectiveness (drive towards credit transfers as alternatives to credit and debit card payments6), and for increased understanding of consumers’ purchasing habits, to develop loyalty programs and maximise cross-selling opportunities.”

RT-RPS system landscape

The map below shows the location of: the 18 countries ‘live’ with RT-RPS systems, the 12 countries that are ‘exploring / planning / building’, and the additional block of 17 countries that are ‘exploring’ through a pan- Eurozone initiative.

Source & Copyright©2015 - SWIFT 

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CTMfile take: All the well established Real Time - Retail Payment Systems, e.g in UK, Sweden have opened up new opportunities for improved efficiencies both collecting and making payments in all for all sorts payments. These are not just restricted to P2P or P2B payments, because the simplicity and low cost make them attractive for all sorts of payments. In the 18 countries that have RT-RPS systems, what improved efficiencies are you missing?