INFORM have launched a new white paper which explains the challenges inherent in securing instant payments and the best means to achieve this goal.
The white paper also claims instant payments represent a huge opportunity to create next-level products and services.
In an earlier blog, we noted that instant payments are set to be the phenomenon of the next decade, with growth of over 30% CAGR leading to one in three payments being instant by 2030.
In anticipation of such rapid growth, the upcoming SCT-Inst mandate from the EU (December 2024) stipulates that all EU banks must be capable of receiving instant payments compliant with the SEPA SCT-Inst standard nine months after December 2024, and sending SCT-Inst payments within 18 months of this deadline.
Securing the instant future, INFORM’s new white paper, explains why instant payments should be both a strategic and operational focus for banks and PSPs at present.
Instant payments are vital: not just to meet current expectations from consumers, businesses and regulators, but also for the future opportunities instant payments offer in terms of new products and increased customer satisfaction and retention.
The white paper says such new products and services are essential factors if banks and PSPs are to retain their competitive advantage in the face of competition from new digital-first banks and fintechs.
By combining external resources such as the Fraud Pattern and Anomaly Detection (FPAD) service set up by EBA Clearing and solutions catering to the Verification of Payee (VoP) regulations stipulated by the EU with data from their own customer interactions, banks can deliver an authentication solution that manages fraud identification in less than ten seconds.
This will help deliver the smooth, rapid and secure payment experiences customers are looking for.
RiskShield, INFORM’s financial crime prevention platform, provides an excellent solution to the challenges banks face in instant payment authentication.
Configured to help banks secure instant payments, RiskShield can be rapidly adapted to reflect upcoming and future regulatory requirements.
The platform can cope with high-volume transaction flows experienced when dealing with fast-growing instant volumes all in less than ten seconds, as well as meeting regulatory requirements for authentication, fraud detection, AML sanctions and CDD.
The right approach to securing instant payments is, at one level, important for protecting customers from fraud and protecting banks from liability for losses.
At another level, adopting an approach that focuses on rich data from bank and PSP customers will deliver better security across the board – as well as unlocking new product opportunities based on analysis of customer transaction data.
The white paper goes into more detail about these opportunities, which include Request to Pay (R2P) services, Automated Push Payments (APP), and more.
Read the white paper from INFORM now to learn more about securing instant payments as the gateway to next-level customer service.
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