Banks may not like it, but the demand is here for faster payments — from businesses, consumers and regulators alike. While they’re apprehensive about the technology, financial institutions are facing pressure to adopt real-time payments capabilities to meet that demand and to comply with new regulations.
In Europe, the driving force behind faster payments is the revised Payment Services Directive, or PSD2, which now includes third-party payment players under its scope. The legislation includes mandates for capital holdings, indemnity insurance, payment data access, security and, of course, access to faster payments.
But between PSD and PSD2, the demand for faster payments began to evolve into a demand for same-day and real-time payments. According to Dion Global Solutions, which provides banks with software to maintain compliance with regulations like PSD2, FIs aren’t exactly ready for this next phase in payments speed.
“Financial institutions are still a little wary about real-time payments,” said Dion Chief Technology Officer Andreas Wagner and Global Head of Financial Messaging and Workflow Jürgen Dahmen, who offered their joint input on the push for payments speed.
The executives said regulators have made real-time payments capability an inevitable requirement, whether banks are happy with that fact or not.
Sourced through Scoop.it from: www.pymnts.com