Real-time transactions and regulations shape payments

When it comes to payment innovation, banks and payment companies have failed to keep their end of the bargain.

Instant payments, pay-by-bank, digital wallets, artificial intelligence and tokenization everyone has was pushed forward from the supply side. Now his all the way to the consumer.

Seth Perlmanthe company’s global head of product i2che said There are several factors that push consumers as well enterprises and banks, towards smooth and immediate payments. drivers, including changing consumer preferences and regulationsthey form the basis of the “relentless march of technological innovation.”

“When consumers have the opportunity to use these payment innovations, they really like them and adopt them very quickly,” he told PYMNTS.

Perlman’s observations were part of a continuing “What’s Next in Payments” series focusing on modernization. Payment companies serving all industries strive to meet consumer expectations for simplified products and services, as well as seamless experiences and speed for end usershe said.

“For those in the industry, we understand it goes a long way it’s busy build and drive the implementation of real-time (payments), money flow, open banking and other new technologies standards by financial institutions,” he said. “Consumers don’t really understand how it all works, but they love instant (peer-to-peer (P2P)) payments.”

Consumers are also taking advantage of real-time payouts by taking on freelance work to supplement their income and add bank accounts to their digital everyday lives without having to have to go through the old multi-day micro-deposit process.

Adoption “new technologies to improve all these processes (has) Really become a necessity for banks and credit unions, and Down FinTechs across the country and the world,” Perlman said.

Mobile payments, Internet of Things, tokenization and authentication would not be possible without cooperation between payment networks, financial institutions, FinTechs and other stakeholdershe said.

TThe need for new technologies

As providers examine their backend technology stacks and grapple with faster payments and faster fraud, are investing in artificial intelligence, machine learning and increasingly effective fraud protections, Perlman said.

“There has been greater integration of advanced biometric methods” too, he said. Biometric data (such as facial recognition and fingerprints) and even voice authentication in contact centers has greatly improved phone authentication key point of contact with the consumer.

Regulation is driving change and opening up new opportunities for forward-thinking companies, he said.

“We have seen trends towards new regulations around data protection and consumer privacy,” he said, adding that “we have seen global efforts to ensure financial inclusion and we have seen a range of standards introduced by regulators governing banking, data sharing, authentication standards and other consumer protections. “

Advanced anti-fraud analytics help companies stay “one step” ahead of bad actors while uncovering unusual online behavior that could point the way to new attack vectors, he added.

Scale of support and development

The twin drivers of consumer demand and regulatory requirements mean that companies – including i2c – have had to modernize their systems to support scale and rapid growth without downtime. Real-time payments and increased user workload have encouraged the financial payments industry to move technology to cloud-based and distributed network environments and Bee, and partnering with platforms such as i2c to support growth efforts across credit, debit and core banking activities, including payment processing, he said.

“We are guided by the core principle that everything we build that is consumer-facing comes from a mobile-first design perspective,” he said.

The platform model makes it easy to exchange data and integrate with the user interface without having to create an entirely new batch process.

“You choose technologies and platforms Make sure you are ready for the next wave of innovation and further changes in the industry,” he said.

The goal of payments innovation and modernization, he said, “is to help consumers access – and use – money more efficiently and quickly.”