ST. PETERSBURG, Fla. — PSCU and Javelin Strategy & Research have joined to publish a new white paper on faster payments.
“As recent efforts focus on instant payments, a new report by Javelin Strategy & Research helps credit unions better understand the complexity of these new payments and guides them through practical steps as they consider their faster payments strategies,” PSCU said.
The white paper is titled “The Credit Unions’ Guide to Faster Payments.”
“As payment modernization continues to gain momentum, credit unions can and should have a seat at the table,” said Vladimir Jovanovic, manager, Innovation at PSCU. “Faster payment methods are accessible to credit unions, with more options becoming available in the near future. The time is now for credit unions to build definitive plans to go to market with these new payment methods, focusing on the needs of current and future members.”
According to PSCU, the white paper discusses the classification of faster payments, payments modernization, use cases and international trends, while also sharing insights into credit union membership and approaches to adoption. It addresses the importance of debit card usage, age demographics and the adoption of new payments and technologies. Fraud is also addressed as an important component of any faster payments strategy.
Other Highlights
The report highlights other key aspects to adoption including:
- Extending faster payments beyond bill payment and P2P activities
- Journey mapping and the aspects of organizational involvement in developing and supporting a faster payments strategy
- Adoption of the required fraud solutions capabilities to support faster payments
- Organizational standards and accountability and ownership
- Continuous monitoring of the member experience
- Planning for the needs for future membership
- Creating an adoption plan and a roadmap to success
3 Ways Faster Payments Will be Seen
According to the white paper, there are three ways faster, real-time and instant merchant payments will be seen within the credit union membership: disbursements, bill payment and mobile payments. Disbursements represent the most immediate impact, with mobile payments gradually being adopted.
“The use cases for faster payments are expansive. Depending on their charter and focus, credit unions can easily identify practical implications of modernized payment methods,” PSCU said. “Modernizing bill payment, person-to-person (P2P) payments and merchant payments will be the primary drivers of change for credit unions, as the speed of payment and ease of transacting with a debit product will appeal to many members. While the faster payments ecosystem is still evolving, credit unions should be prepared for the future of payments.
To download the paper, click here.