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Treasury and Trade Solutions
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The Request to Pay Revolution
9
RTP IMPERATIVES
When bank accounts are accessible in real time through
clearing systems and/or Open Banking APIs, a powerful
new layer has been created in the banking infrastructure.
Regulators, merchants, marketplaces, banks and fintechs
need to consider their strategic responses.
Direct digital collections from bank accounts in real time
represents a profound shift in payments but there is a
clear and present danger that they miss the mark from a
regulatory and user perspective. The overriding message
for all stakeholders is to actively engage and not to treat
this topic as a regulatory compliance matter.
• Build schemes on open standards, i.e. ISO 20022
• There should be a sensible risk based approach to
authentication using a combination of methods,
e.g. transaction risk analysis, value limits, trusted
beneficiaries, liability sharing models.
• Consider pros and cons of mandatory bank
participation.
• Consider pros and cons of a centralized clearing
system versus Open Banking (if Open Banking, then
drive standardization).
• Make sure that RTP meets the needs of C2B
merchants and B2B use cases as well as solving for
consumer protection and convenience.
• Consider global best practices, e.g. build RTP and
tokenization together.
• Government departments are large users of
payments systems – they should be early adopters
of RTP to drive consumer acceptance and adoption.
• Enable access by global merchants, i.e. allow RTP
collections into non-resident accounts.
• Engage with the new RTP schemes to make sure
your voice is heard on customer experience and
scheme rules.
• Work with banks and fintechs to address the RTP gaps.
• Test your use cases against attributes of the new
schemes, e.g. current usage of card authorizations,
recurring payments, etc.
• Consider how to reward consumers to use efficient
payment methods.
• Multinational merchants should push for standardized
interfaces to RTP and other real time payments
schemes, e.g. a JSON API implementation of ISO 20022.
Regulators/Governments
Merchants and Marketplaces
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The World Wide Web
Consortium (W3C) develops
open standards to ensure
the long-term growth of the
Web. W3C’s new payment
standards streamline the
checkout experience and
create opportunities to
integrate new payment
instruments like RTP into
Web and mobile commerce.
W3C’s payment standards
create a fast and consistent
payment experience across
browsers and increase
security, for example by
supporting tokenization and
strong authentication.”
Ian Jacobs,
Head of W3C Payments