Taking Real Time Payments Global

16. October 2017.

David Kretz, head of global payments, global transaction services, Bank of America Merrill Lynch:

With increasing adoption of electronic and mobile payments, and the continuing globalisation of commerce, the financial industry is focused on making payments truly global, fast, price-appropriate and data rich. One potential way to achieve these objectives is interoperability of local real-time payment (RTP) systems. End-users will likely come to expect real-time processing of their cross-border payments in the future.

With banks responsible for the actual movement of money, we recognise three primary challenges to RTP interoperability: settlement risk, regulation and oversight/standards. A real-time user experience depends on immediate funds availability to receivers, yet current settlement activities supporting cross-border payments do not occur in real time. Local regulations and the lack of a single overseeing body add complexity. Finally, the industry would need to achieve agreement on general governance, data standards and establish appropriate disclosures to support transparency.

We will be happy to hear your thoughts

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