Faster payments and remittance services have had record-breaking amounts of investment this year.
A Fintech Global report, published this week, found that global investment in payments and remittance companies has reached a historic high.
For the first half of the year alone there has been $17.5 billion invested, which trumps the $12.3 billion investment for all of 2017, the second highest year on record.
The sector is buzzing as new realtime payments rails will soon be made available, yet some banks may not have the necessary architecture to address pain points that come with new, faster payments technology, including request for payments.
“We’ve been focusing a lot on the connectivity aspect of realtime payments and getting the infrastructure in place,” said Keith Gray, VP of strategic partnerships at The Clearing House, during a webinar on RTP this week. “RTP and RFP by definition are infrastructure components, they are not the applications.”
An emerging concern around RTP for banks is also originality.
“A lot of banks are asking, ‘how do we create value and unique products on top of this infrastructure that everybody has access to?’” said Gray.
Along with tech stack to support RTP and offering original products there is the fact that faster payments create an opportunity for faster fraud.
For many consumers the means to exchange RTPs will be mobile. Early Warning spoke with Bank Innovation about what securing for faster payments and preventing fraud will look like for this channel.
“I can use data to establish a bind, that associates a customer with a particular device,” Rich Rezek VP of authentication products, told Bank Innovation.
“When we talk about RTP, we talk how to establish maximum trust, passively,” said Rezek. “We’re starting to look at if we detect by the way you’re holding your phone, and the model, that you’re not a script playing on a simulated iPhone, checks like that, the consumer wouldn’t know we did that. It’s a passive way to gather data, it’s not intrusive.”
Payments will continue to command attention, investment, and innovations for fraud controls, especially with the advent of new rails, it behooves banks to address the logistics of deployment, and allocate resources to securing this new payment gateway.
See the full Fintech Global report here.Like This Post