Real-Time Payments / Near Real-Time Payments
Real-Time Payments enable the immediate transfer (or close to immediate transfer) of funds between accounts, 24/7. This offers significant advantages over traditional payment methods with slower or unpredictable settlement times, transaction fees and lack of clarity over payment completion. Real-Time Payments typically refer to retail payment solutions, and the effective impossibility of instant payment has led to the use of the term Near Real-Time Payments, reflecting delays of seconds, minutes or even hours, in contrast to days for a payment to complete.
Applications
E-commerce:
Reduces fraud in online card payments by verifying the cardholder's identity
E-commerce:
Reduces fraud in online card payments by verifying the cardholder's identity
Advantages
- Enhanced security: Reduces unauthorised transactions by verifying that the genuine account holder is authorising the payment
- Enhanced security: Reduces unauthorised transactions by verifying that the genuine account holder is authorising the payment
Challenges
- User Experience: Additional authentication steps can cause friction and increase checkout abandonment
- User Experience: Additional authentication steps can cause friction and increase checkout abandonment
