GAUGING THE MARKET
REAL-TIME RAILS CAN UNLOCK NEW VALUE CREATION OPPORTUNITIES FOR UAE FINANCIAL ORGANISATIONS
With new digital payment trends on the rise , a new set of impactful use cases are now possible . Craig Ramsey , Global Head of Realtime Payments , ACI Worldwide , talks about this and how real-time rails can create new opportunities for financial institutions in the UAE .
With their proven ability to drive economic growth , as well as a host of other benefits and conveniences for businesses and consumers , real-time payments are surging in popularity . More than 60 countries have either implemented real-time systems or are working towards a launch . The United Arab Emirates ( UAE ) is set to join this group , with its Instant Payments Platform ( IPP ) set for early 2023 . ACI Worldwide ’ s Prime Time for Real-Time report predicts that the UAE will experience a 36.5 % CAGR in real-time transactions from 2021 to 2026 .
Real-time payments are already available to a large portion of the global population . And as the vision for even greater availability and inclusivity becomes a reality , the movement to a global-payments ecosystem will be complete and every individual and enterprise will have access to fast , open , digital transactions . While the most obvious use case for real-time payments may be person-to-person ( P2P ), customers making payments-to-businesses ( C2B ) is where most of the innovation is likely to occur , and business-to-business ( B2B ) use cases such as leveraging Request for Payment along with e-invoices for collections also hold the potential to deliver immense value to organisations . There are many examples of this around the world , from Sweden , where real-time payments are used in local coffee shops , to the UK and its use of the technology for one-off bill payments . In Brazil , B2B models allow businesses to pay their suppliers in real-time .
When the UAE ’ s IPP goes live , all these use cases and more will be available to the country ’ s growing economy . Here are some of the ways in which financial institutions in the country can leverage real-time rails to create value for customers and thereby enhance their competitiveness .
Request for Payment ( RfP )
One of the main applications of real-time payments is in the high-volume biller space . Request for Payment ( RfP ) schemes – which have been launched in the US and UK – are set to launch in Europe later in 2022 . RfP services allow billers to send electronic requests for payment , to which customers can respond securely through their smartphones . RfP offer the opportunity for banks and financial intermediaries to add value for mortgage
RfP can smooth shoppers ’ experiences and secure all important cash flows for retailers . www . intelligentfin . tech
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