Real-Time Transactions and Regulations Keep Changing Payments

In the realm of payments innovation, banks and payment companies have consistently met the challenge, propelling forward instant payments, pay-by-bank solutions, digital wallets, artificial intelligence, according to PYMNTS. Now, the focus shifts to consumers.

Seth Perlman, global head of product at i2c, identifies several drivers pushing consumers, enterprises, and banks toward seamless and instant payments. He cites shifting consumer preferences and regulations as key factors underpinning «the relentless march of technology innovation.»

“When consumers get an opportunity to use these payment innovations, they tend to like them a lot, and they adopt them really quickly,” Perlman told PYMNTS.

Perlman’s insights are part of the «What’s Next in Payments» series, highlighting the industry’s modernization efforts. He emphasizes that payments firms are striving to meet consumer desires for simplified products, friction-free experiences, and speed. According to Perlman, while consumers may not understand the intricacies of real-time payments, they appreciate the benefits.

Consumers are increasingly embracing real-time disbursements, particularly as they turn to gig work to supplement their incomes. Perlman notes that adopting new technologies to streamline these processes has become essential for banks, credit unions, and FinTechs globally.

The success of mobile payments, the Internet of Things and credentials hinges on collaboration among payments networks, financial institutions, FinTechs, and other stakeholders. Providers are investing in AI, machine learning, and advanced fraud-fighting defenses to keep up with faster payments and fraud risks.

“There’s been more integration of advanced biometrics,” Perlman said, highlighting the role of facial recognition, fingerprints, and voice-print authentication in enhancing security and streamlining authentication processes.

Regulations are also driving change and creating new opportunities for innovative companies. Perlman points to trends in data protection, consumer privacy, financial inclusion, and standards for data sharing and authentication.

Advanced analytics help companies stay ahead of fraud, detecting anomalous behaviors that signal new attack vectors. The combined forces of consumer demand and regulatory mandates compel companies like i2c to upgrade their systems for scale and rapid growth, moving technology to cloud-based environments and APIs.

“We have a fundamental tenet that everything we build that is consumer-facing comes from a mobile-first design point of view,” Perlman stated. This approach simplifies data exchange and integration, making it easier to handle future industry innovations.

Ultimately, the goal of innovation and payments modernization is to enable consumers to access and use their money more efficiently and quickly.