Icon Solutions: New Research Shows Leading Global Banks Expect Request to Pay to Challenge Direct Debits and Payment Cards
- S&P 500, Dow open higher on earnings optimism
- Broadcom (AVGO) to Acquire VMware (VMW) for Approximately $61 Billion in Cash and Stock
- NVIDIA (NVDA) Falls on Downbeat Guidance, Evercore ISI Remains a Buyer as Shares Trade Near an 'Estimated Floor of $150'
- Apple (AAPL) Stock Dips on Report It Expects Flat iPhone Production This Year
- Alibaba (BABA) Shares Jump 3% as eCommerce and Cloud Demand Drives Solid Q4 Beat
News and research before you hear about it on CNBC and others. Claim your 1-week free trial to StreetInsider Premium here.
CAMBRIDGE, England--(BUSINESS WIRE)-- A survey of leading global banks by Icon Solutions has revealed that Request to Pay is widely expected to challenge established payment methods, with 87% of respondents viewing it as a good alternative to direct debits and 71% expecting it will reduce merchant’s dependency on payment cards. Yet 67% also identify bank readiness as the main barrier impacting adoption of Request to Pay services, with the limitations of existing technology and a lack of clear strategy seen as the key inhibiting factors.
In allowing payees to initiate requests for payments within a secure messaging channel, Request to Pay enables new flexible ways for money to move between people, organisations and businesses. ‘Demystifying Request to Pay: An Industry Perspective’ surveys over 50 industry stakeholders, including global retail and corporate banks, to understand customer demand, key use-cases and the path to widespread adoption. In-depth interviews were also conducted with senior executives at several leading banks.
Despite early momentum from retail customers for bill payment services, 73% of respondents see most demand for Request to Pay services from large corporates. To reflect this increasing demand, respondents are planning to leverage Request to Pay to diversify product roadmaps, with invoicing, payments reconciliation, and the digitalisation and integration of processes and systems identified as the leading emerging use-cases.
Louise Shorthouse, Senior Payments Consultant at Icon, comments: “Make no mistake, the industry expects Request to Pay to have a lasting impact on the future of banking and payments. The potential to deliver more flexibility, choice and control to corporates, merchants and consumers – while reducing costs – offers a real alternative. For example, Request to Pay opens the ability to circumvent traditional card rails and drive consumers towards cheaper account-to-account (A2A) based payment options at the point-of-sale, and provides an alternative to direct debits that gives customers more flexibility in how they pay bills and manage their finances. If we consider the massive transaction volumes involved, it seems inevitable that Request to Pay will change the way we pay.”
Yet despite increasing customer demand and growing uptake of instant payments presenting a compelling business case, a gap persists between industry attitude and actions. Few survey respondents had launched Request to Pay services to date and Request to Pay does not feature on the short-term roadmaps for many. While countering the risk of fraud and standardising message content and exchange are seen as key challenges, bank readiness is overwhelmingly seen as the main barrier to adoption.
Toine van Beusekom, Strategy Director at Icon explains: “Despite the undoubted potential of Request to Pay, technology transformation programmes remain notoriously difficult. Identifying a pragmatic path to upgrade existing technology estates, in tandem with a clear strategy that is aligned with broader business objectives, will be critical to accelerating bank support for Request to Pay services and remaining competitive in the long-term. But with banks already at the limits of their technological and strategic capacity, trusted third-parties promise to play an important role in filling the resource gap to help banks realise the huge opportunities presented by Request to Pay.”
To learn more, download the full report.
Icon Solutions is a leading specialist provider of services and technology solutions that are simplifying banking transformation.
Icon is the past, present and future of payments. With a proven record delivering mission-critical solutions for global institutions, it is driving the next-generation of banking and payments architecture. Icon combines industry-leading domain experts, services, accelerator assets and technology that empower customers to solve problems, fight complexity and embrace change.
Icon has applied its payments, technical and integration expertise to create IPF: a low-code, cloud-native, open-source technology platform to accelerate payments transformation.
For further Icon Solutions media information, please contact:
Source: Icon Solutions
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- CreditPoint Announces Launch of New Bureau Management Library (BML)
- Lucid Announces Enhanced Asynchronous Collaboration through Partnership with Loom
- Pikkuvihreä makes the move to frictionless delivery with nShift
Create E-mail Alert Related CategoriesBusiness Wire, Press Releases
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!