88
89
CMSPI – IAC State of the Industry Report
CMSPI – IAC State of the Industry Report
Canada A2A payments grew 4% in Canada, a trend largely attributed to Interac Online, an online interbank payment method in Canada offered by Interac, the nation’s interbank network. 159 The anticipated launch of Real-Time Rail (RTR) in Canada, a new real-time payment system was initially set for mid-2022, but experienced delays, pushing the date to June 2023, with subsequent postponements lacking a clear revised launch date. 160 United States In contrast, the U.S. Federal Reserve introduced a new real-time payments network, FedNow, in July 2023. 161 The U.S. already has the Real-Time Payments (RTP) network by The Clearing House and Zelle, a predominantly peer-to-peer bank transfer system owned by a consortium of U.S. banks like Bank of America, Capital One, Wells Fargo, and JP Morgan Chase. The launch of FedNow in 2023 aims to speed up instant payment adoption. 162 The adoption of FedNow, however, may encounter some initial challenges. Firstly, adoption is voluntary among banks, and despite the involvement of 35 financial institutions and 16 service providers at launch, reported volume on the new rails is limited .163 Secondly, merchants and services providers are managing through differing transaction message and customer payment experience flows when accounting for pay-by-bank adoption and utilization of instant payment services. For example, FedNow supports push payments compared to pull payments, which are commonplace in merchant card accepting environments
Figure 4.3 – Snapshot of Local Payment Methods in Asia Pacific 157
Section 4.4.2 – Digital Payment Methods Global Developments
In Section 4.4.2, we will not cover Digital Payment Methods where the underlying payment instrument is a card payment. This means we will not be discussing digital wallets such as Apple Pay or Buy Now Pay Later. 158
DIGITAL PAYMENT METHODS IN THE AMERICAS Across the Americas region, the usage of A2A payments by consumers and the development of instant payment systems (IPS) by central banks and regulators have been a prominent trend in 2023. For an overview of Pix in Brazil, please see Section 4.4.3.
159 Interac’s new online program, Konek, was developed in conjunction with the country’s largest financial insti - tutions: What is KONEK and how does it work? | National Bank (nbc.ca) 160 https://www.openbankingexpo.com/news/payments-canada-reveals-further-delay-to-real-time-rail-delivery/ 161 https://www.federalreserve.gov/newsevents/pressreleases/other20230720a.htm 162 https://www.aciworldwide.com/blog/tch-rtp-and-fednow-whats-next-for-us-immediate-payments 163 https://www.pymnts.com/news/faster-payments/2023/five-months-in-fednow-is-doing-what-it-was-planned- to-do/
157 CMSPI Estimates and Analysis. This list is not exhaustive and does not imply affiliation. 158 Not all Buy Now Pay Later (BNPL) transactions are card-backed
Powered by FlippingBook