ACI Worldwide has announced the launch of its instant payment solution for merchants in the UK and Europe.
The company’s press release, which was published last Monday, June 19, indicates that with the help of ACI Instant Pay, British and European customers will be able to accept instant online payments, mobile payments, and payments in stores by integrating with the company’s real-time transaction management platform.
Basant Singh, global head of ACI’s trading business, says that the payment sphere in a technological sense should correspond to a society in which the concept of digitalization is being actively implemented. He noted that currently, 90% of European residents aged 16 to 74 use the Internet, and 74% buy goods on online platforms. According to him, in the expanding world of electronic transactions, the issuance and receipt of money should become as fast a process as the transfer of cash.
The press release notes that the launch of the new solution takes place during the preparation of banks for a new law, according to which financial institutions operating in the countries of the Euro Single Payment Area (SEPA) must offer instant payments under the accelerated credit transfer plan. Against this background, the introduction of instant transactions by sellers is almost guaranteed.
The company claims that the non-cash settlement format increases the level of control over cash flows. E-commerce sellers who rely on fast delivery can receive payments instantly and quickly release goods and services.
Experts say that instant money transfer formats are beneficial for both sellers and buyers. Payments of this category are of particular value in conditions of high inflation, due to which many families, including those with high incomes, live from paycheck to paycheck. In the USA, studies have shown that 70% of urban residents live in the mentioned financial regime. Among them, instant payments are in demand.
Money sent in real-time is instantly transferred between accounts, unlike deferred payments or checks waiting to be cashed by the recipient. In this case, consumers know exactly what amount will be available to them at a particular moment. Instant payments will allow you to make more rational financial decisions and avoid overspending on accounts, due to which the client may face fines from the bank and other troubles.
In the USA, 70% of consumers who live from paycheck to paycheck, if they have a choice, prefer instant payment options. At the same time, not all of them are willing to pay extra for the opportunity to receive information about the location of money and the exact time of their appearance on the account. Also, more than 25% of consumers are willing to pay a commission fee for instant receipt of government payments.
As we have reported earlier, BNY Mellon Partners With MoCaFi on Payments to the Unbanked.
