Exponential Global Growth of Real-Time Payment Systems shapes FSI Innovation, Providing New Market Opportunities


Due to increasing demand for faster and more convenient payment options, real-time payments (RTP) are gaining traction globally. In the US, the Clearing House’s RTP network processed over 1 billion transactions. Countries like Australia, Singapore and Canada have also implemented  RTP systems. FedNow, a new real-time payment system (developed by the Federal Reserve), is expected to launch in 2023, providing a secure, efficient, and cost-effective payment system. The New Payments Architecture (NPA) is a program developed by the Bank of England and the UK payments industry to modernize the UK’s payments infrastructure. The European Central Bank (ECB) launched its own instant payment service called Target Instant Payment Settlement (TIPS), allowing instant transfers between banks within the European Union.

In emerging markets, RTP adoption was driven by the need for financial inclusion and the growth of mobile payments. PIX, a real-time payment system launched by the Central Bank of Brazil in 2020, allows individuals and businesses to make instant payments, 24/7. UPI, launched by the National Payments Corporation of India in 2016, was a game-changer, with over 3 billion transactions processed in January 2022 alone. M-Pesa, a mobile money service in Kenya, was also successful in providing real-time payments services to a large population of unbanked and underbanked individuals. RTP is becoming the norm for payment processing, quickly replacing traditional payment methods.

Challenges for Payments Systems 

Payments systems face several obstacles around resiliency, performance, and time to market. One of the biggest challenges organizations face is ensuring resiliency and availability. Both require design and implementation of systems that handle high volumes of transactions without downtime, system failures, or cybersecurity threats. Systems must process transactions quickly and efficiently, minimizing errors or delays.

Time to market is a key factor in the development and deployment of payments systems, requiring a significant investment in development, testing, and deployment processes. Challenges include, data privacy, security, and interoperability. Payments systems must comply with various regulatory requirements, protect sensitive customer information, and interoperate with other systems and networks thereby requiring investments in infrastructure, software, personnel, and compliance measures to ensure successful development, deployment, and operation.

Benefits of Container Platforms and Cloud Technologies for Payments Systems

Container platforms offer several potential benefits for payments systems, such as greater resiliency, performance, and time to market. Containers are lightweight and portable, and can easily be replicated and scaled horizontally across multiple nodes. They can also be quickly spun up or down as needed, offering better resource utilization, reducing the risk of downtime or system failure. Additionally, containers can easily be deployed to edge locations, reducing latency and improving system performance.

Container platforms can improve the time to market for payments systems by enabling the packaging of applications and dependencies into single units that can be easily deployed to any environment. They enable better collaboration between development and operations teams, faster release cycles, improved security, and greater flexibility and portability across different environments. Container platforms offer greater benefits for payments systems resiliency, performance, and time to market. They can help payments systems meet customer needs, remain competitive, and drive innovation

Simplifying Processing with Real-Time Data and Containerization

Real-time data enables payments organizations to process transactions faster and more efficiently, detect fraud or errors in real-time, and optimize payment routing and processing. Container systems can help payments organizations simplify their processing complexities by providing a more efficient and flexible platform for deploying and managing applications. Containers allow organizations the ability to deploy applications and dependencies as a single unit, simplifying the management and scaling of applications across different environments.

Real-time data and container systems enable better payment analytics by monitoring transactions in real-time, providing valuable insights into customer behavior and payment trends. Container systems also provide a more efficient platform for processing and analyzing large volumes of data. Real-time data and container systems both help payments organizations simplify their processing and system complexities by enabling efficient, faster, and more flexible management of payment transactions. This improves resilience, performance, and time to market, while also providing valuable insights into customer behavior and payment trends.

– Ramon Villarreal, Global Head of Payments, Red Hat

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