expert interview In addition, the transaction behavior will change over time requiring e<strong>vol</strong>utional platforms that grow with the business, versus the business conforming to legacy technology. There is a risk of poor performing industry standards in the areas of Security, KYC & AML and other effective customer screening. Demand that processors perform strict due diligence on Originating entities. “ Real-Time Payments in the U.S. is a reality. The time for talk is over, ,, we’re doing it right now! Travis Dulaney, CEO & Co-founder, Push Payments Security should be of utmost importance, we are basically providing “a machine gun that shoots money”. So obviously, it is important that we are diligent with understanding everything about the entity, the people, their policies and controls while performing regular audits and validation checks. Once utilizing a secure environment, the benefits are endless. Increasing profits, providing competitive advantages, reducing manual processes and their related errors and most important the ability to build new business models. Business models that solve problems and create new user experiences as technology continues to progress. <strong>PCM</strong>: How do Instant Payments impact the various players in the industry? (Banks, PSPs and Merchants alike) Travis: It is important to understand that this new payment rail is the systemic automation of the current Automated Clearing House (ACH) payment type. While Instant Payments does have a larger impact, it isn’t necessarily a replacement for retail “purchase” transactions. However, this could be an e<strong>vol</strong>utionary point in the future. Banks, Processors, Mobile Providers are perfectly positioned to take advantage of the new payment rail opportunity, by offering new products and services to their Merchants. Merchants, consumers and society as a whole can benefit by enabling better cash management and helping businesses manage day-to-day operations by improving liquidity. <strong>PCM</strong>: What role does PSD2 play when it comes to Instant Payments and what will the impact of it be? Travis: PSD2 has a rippling effect across the globe starting from the regulatory policy to the banking digitalization and the API economy. Unlike ever before, we have disruption in all sectors of the financial services industry at the same time combined with the globalization of the world’s economy. Interoperability, transparency and open directory services are PSD2 requirements and will become the new capabilities of payment platforms going forward. There will be different impacts based on the local regulatory environment and growth of banking and fintech collaboration. As a member of the United States’ Federal Reserve Faster & Secure Task Forces, many innovations are underway both at the federal level and by commercial market leaders. <strong>PCM</strong>: What can we expect in the future in terms of the development of Instant Payments and providing opportunities for Merchants and other players in the industry? Travis: 1. We are just at the beginning of understanding all of the use cases that will be able to take advantage of real-time payments. Every day we learn about new business models and companies that are excited about how real-time payments will change their revenue models or provide a competitive advantage. 2. The majority of the goods and services that we buy or use today are shifting towards on demand fulfillment, and the instant movement of funds will be an integral part of that user experience. 3. Whether it’s paying a vendor for supplies, sending emergency cash to traveling employee, or providing immediate payment to contracted workers that have just finished their shift, or just moving money from one account to another, realtime payments will become a standardized way of transferring value. Push Payments Push Payments provides payment processors, banks, and mobile providers the ability to move money in real-time between bank accounts. Having built a re<strong>vol</strong>utionary switching platform, customers gain the infrastructure necessary to achieve an unprecedented advantage over competitors with simple, secure, and smart API interfaces and best in class market solutions. 14
Spotlight You think you have what it takes to start a business in a super-hot market? <strong>PCM</strong> takes a close look at some of the most innovative and promising startup companies in the payment industry.
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