There are many aspects of business and commerce that are transforming at a rapid rate in order to keep pace with technological developments and you can read about the latest banking trends, for instance, at mywealthandinvestment, and another hot topic of discussion surrounds real-time payment capabilities.
Here is a look at some of the main pros and cons relating to the world of opportunities that appear to be on offer through the use of real-time payments.
The cost-saving benefits are there for all to say
A fundamental point about any payment system is not just whether you can improve the payment experience and increase levels of efficiency and accuracy but also whether its implementation will help drive down processing costs.
On that score, it seems that real-time payments create a competitive edge as the cost of processing a real-time payment is lower compared to the cost of taking payment by cheque.
It is also encouraging to note that the cost of real-time payments has fallen as systems have become more efficient and mature.
Any business that can reduce its payment costs and enjoy better cash flow as a result of faster payment clearing times has to be in better shape and that is a positive aspect of real-time payments.
Improved financial insights
Another point to consider with regard to real-time payments is that it creates a scenario where the value of the data you are collecting has a greater value in terms of empowering your business through greater financial insights.
Digitized supply chains combined with a reliable real-time payments network will potentially put your business in a strong position to be able to collate and analyze data in a way that you should be able to spot some powerful trends that you could take advantage of.
Why is uptake slower than anticipated?
When you think of the various positives attached to real-time payment systems it would be fair to assume that these systems would be widely adopted across the business community.
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The underlying reason why global uptake has been slower than anticipated so far is likely to cost.
Real-time payment systems are still generally perceived as expensive to implement and that is holding progress back, despite the obvious positives that come with having a system in place.
Developing your own bespoke real-time payment infrastructure will probably require some deep pockets at this stage of its development but the cost of implementation is surely going to fall as time goes by and the technology evolves in line with greater uptake.
One potential solution to overcoming that financial barrier could be to make use of a third-party service provider or banking organization as a way of joining the payment revolution.
One other key drawback is the problem of system incompatibility which could make it harder and costlier to embrace real-time payments within your business.
There are pros and cons relating to real-time payments, for sure, but when you weigh up the arguments on both sides you will probably come to the conclusion that real-time payment systems are almost inevitably going to be a major part of the payment system landscape in the future.