Payment rails: how to reimagine them from the ground up

White Logo of ECS Fin Blue Logo of ECS Fin

Payment rails: how to reimagine them from the ground up

Gone are the days when launching a new payment infrastructure was considered a years-long process. The new payment rails are scalable, flexible, and secure against new and emerging threats, as well as factoring in global standards and interoperability. Speaking unequivocally, the future for payments has never looked brighter.

Payment rails: how to reimagine them from the ground up

According to a Gartner study, 64% of banks desire a payment hub.

And 24% of banks are currently implementing one

Total Payment is a best-of-breed solution

Tracking different payment rails in distinct regions:

With the advent of mobility and high-speed connectivity, different payment rails are redefining the way payments are settled and acknowledged, in line with customer journeys and experiences. ACH, RTGS, and real-time payments are gaining traction among retail banking customers. For instance, Faster Payments Service (FPS) in the United Kingdom (UK) debits and credits the payer and the payee’s accounts, respectively. The settlement risk is also buffered to an extent through many cybersecurity regulations and reserve requirements.

Catalysts of the push for adoption of distinct payment rails

Catalysts of the push for adoption of distinct payment rails
Some banks emphasize streamlining and simplifying their core platforms and outsourcing some of the on-premise infrastructures to cloud providers. However, others are on the way to adopting application programming interface (API) technology to facilitate connections with third parties seamlessly.
Regardless of the driver, banks are pouring enormous resources to update their legacy models, reassessing their core infrastructure, and forging new partnerships to develop new business models, such as white-label banking.
Banking-as-a-Service:

Banking as Service platforms embrace embedded finance-banking-like services by letting banks open up their APIs for third parties to develop new services.

Cloud:

The adoption of cloud technology has made it much more convenient for banks to access cheaper data storage, reduce internal siloes, and shorten the product development cycle and maintenance.

Digital Banking

Digital Banking has become inevitable in advancing the financial goals of banks and financial institutions- offering a wide array of payments such as domestic payments, international payments, e-Wallets, and Bill Payments with real-time banking experience.

Open Banking:

Open Banking holds the potential to foster both traditional banks and new players as digital banks and neo banks to provide innovative experiences and products to consumers and businesses alike.

Here's how we can help

IMS Payments helps financial institutions of every size to reduce operating expenses, simplify payment operations and improve customer service by consolidating all payment processing (ACH, Wire, SWIFT/ cross-border, Real-time) and payment data in a single centralized payment solution. The solution offers an end-to-end processing payment lifecycle: initiation, liquidity management, OFAC screening, fraud checks, account posting, domestic and cross-border clearing and settlement connectivity, and SWIFT messaging.