Real-time payments enable instant, faster payments that help businesses, consumers, and service providers to prosper. Consequently, it enhances the cash flow of the businesses as per the requirements.

Even it leads to instant money transfers between banks and consumers. As we know, it increases the availability of funds and increases the growth opportunities of the businesses.

The technology of real-time payments certainly drives global consumer demand to be able to pay and to be paid in real-time. Above all, the key requirements and aim of the real-time payments are the same as to deliver real-time value, thereby increasing the growth prospects of the businesses.

Concept of real-time payments:

Real-time payments have a pivotal role in immediate funds availability, settlement finality, and instant confirmation. It brings speed, data, and communication to solve future challenges. A person should have a corporate bank account to make Real-Time Payments.

In other words, it provides a great opportunity in the payment process to stakeholders, consumers, and businesses.

Real-time payments and banking sector:

The reasons why the banks should embrace real-time payments are as follows:

1. Customers: As a result of the growth of the digital economy, banks need to adapt to the technologies that are available in the market to become financially strong. This leads to the disbursements of funds.
2. Stay Competitive: Above all, the need of the hour is to build a strong payment system and adoption of digital technologies. It can be increased by the concept of customer support services and running with the needs and requirements.
3. Revenue Growth: As with the increasing demands of the consumers and industries, Real-Time Payments optimize the funds.  On the other hand, banks modernize their businesses and transparency of funds; it will lead to increased revenue and services.

Challenges in Real-Time payments:

Real-time payments face a lot of limitations. Some of them are as follows:

• Firstly moving to real-time payments is not easy for any banking infrastructure and on the other hand, it involves rigorous processes like migrating files and becoming technologically advanced for constant payments.
• It needs the new technical architecture to send the payments instantly. On the other hand, the payment channels are growing through different modes and need different workflows & cash management.

Why are Real-Time Payments gaining momentum?

The key influencers of real-time payments are as follows:

1. Starting Point: Banks that have the centralized payment hub have a good foundation to release Real-Time Payments. Those banks without a payment hub find it difficult to send Real-Time Payments.
2. Time Frame: It is the essential point that banks should focus on the time frame of the payments & without a centralized payment hub, it will become very difficult to release payments.
3. Cost: The cost of establishment is huge therefore it should be done with a vicious mind.
4. Customer Adoption: As a result of increasing digital demand, it is essential to make it consumer-friendly.

Significance of the Real-Time Payments:

1. Commerce: Real-time payments offer ubiquity, payment efficiency, and the interaction of various businesses.
2. Corporates: It helps in effective e-invoicing and billing, improvement of liquidity management, optimized working, and cash management.
3. Government: It leads to an increase in the availability of funds whenever required.
4. Society: It leads to the reduction in crimes associated with the payments by increasing the revenue intelligence.
5. Economy: It leads to the growth in the GDP by increasing the efficiency of payments

Future:

In conclusion, as we know that the progressive markets will continue to push innovation towards Real-Time Payments. The development of more efficient, faster, and increasing transparency is leading the way. In a nutshell, we are at the beginning of the next-generation thinking of real-time payments, especially at the global level. In 2019, the retail and e-commerce segment acquired the highest market share. The adoption of real-time payment solutions has been pushed by the increasing demand for immediate payment settlement from merchants and retailers.