<img src="http://www.explore-123.com/9942.png" alt="" style="display:none;">

Instant Payments: The 5 Key Requirements Banks Need Now !

Frame 4 (4)

The landscape of payments is evolving rapidly, and instant payments are taking centre stage. As the demand for immediate transactions grows, banks face the challenge of adapting their infrastructure and processes to comply with regulations and meet customer expectations. Here are five key requirements banks need to address to successfully navigate the world of instant payments:


1. Ensuring Robust Regulatory Compliance

Regulations surrounding instant payments are becoming increasingly stringent. Banks need to ensure they meet these requirements, which may include:

  • 24/7 Availability: Providing instant payment services around the clock, 365 days a year.
  • Real-time Validation: Implementing systems for real-time verification of payee information and adherence to anti-money laundering (AML) and Know Your Customer (KYC) regulations.
  •  Standardized Messaging: Adopting common messaging formats like ISO 20022 to facilitate seamless communication within the instant payment ecosystem.


2. Prioritizing Secure and Reliable Infrastructure

Instant payments demand robust infrastructure capable of handling real-time transactions and safeguarding sensitive financial data. Key considerations include:

  • Scalability: Systems must be able to handle increasing transaction volumes without compromising speed or stability.
  • Resilience: Building in redundancy and disaster recovery measures to ensure service continuity in case of outages.
  • Enhanced Security: Implementing robust security protocols like multi-factor authentication and fraud detection mechanisms to protect against unauthorized access and financial crime.


3. Seamless Integration with Existing Systems

Integrating instant payments with existing core banking systems in a real time manner with 24x7 operations is crucial for a smooth transition and efficient operation. This can be achieved by :

Leveraging Open APIs: 

Utilizing open application programming interfaces (APIs) facilitates easier integration with existing infrastructure and third-party solutions.

Microservices Architecture: 

Implementing a microservices architecture allows for modular and independent components, simplifying integration and future updates.

Real-time Mirroring Gateway:

Enables real-time mirroring of account information from backoffice systems, allowing for realtime verification of funds during instant payment transactions and ensuring seamless transfer of funds with immediate confirmation.

Streamlined Workflows:

Automating workflows and leveraging APIs can streamline the instant payment process and reduce operational costs.



4. Embracing Collaboration and Partnership

Collaboration with various stakeholders can significantly benefit banks in their instant payment journey. This includes:

  • Fintech Partnerships: Partnering with fintech companies can provide access to cutting-edge technologies and expertise in areas like fraud prevention and customer experience.
  • Industry Collaboration: Participating in industry-wide initiatives and collaborations can foster innovation and ensure consistency in implementing instant payment standards.
  • Regulatory Engagement: Maintaining open communication with regulators allows banks to stay informed about evolving regulations and contribute to shaping the future of instant payments.


5. Building a Customer-Centric Approach

Ultimately, the success of instant payments hinges on delivering a positive customer experience. Banks should focus on:

  • User-Friendly Interfaces: Designing intuitive interfaces that are easy to navigate and understand for users of all technical backgrounds.
  • Transparency and Education: Providing clear information about instant payments, including transaction fees and limitations, to build trust and encourage adoption.
  • Value-Added Services: Exploring ways to leverage instant payments to offer additional value-added services, such as real-time bill payments or integrated loyalty programs.

By addressing these key requirements, banks can effectively position themselves to thrive in the era of instant payments.This transition demands a commitment to innovation, collaboration, and a customer-centric approach, paving the way for a faster, more efficient, and secure financial ecosystem for everyone.


Streamline Instant Payments with Pelican AI 

Get real-time payments up and running fast with Pelican AI. We're a Frontrunner service provider officially recognized by EBA Clearing, allowing seamless connection to the pan-European real-time payment infrastructure. This covers 34 European countries, ensuring smooth transactions across borders. 
But Pelican AI goes beyond just SEPA Instant Payments. Our solution, PelicanInstant, is adaptable to future instant payment schemes as they emerge. This means you get a scalable and future-proof solution that grows with your needs.
Pelican’s instant payments solution is an innovative real-time payments processing service, enabling banks and PSPs to make and receive real-time payments in multiple locations.