3 PAYMENT METHOD SCORECARD: PAY BY BANK (REAL-TIME PAYMENTS)
Consumer/Bank Costs Rewards Most real-time payments do not offer rewards to users. Interest Payment on Debt Given the nature of real-time payments, there is no debt accrued. Surcharging Customers are usually not surcharged for real-time payments
Cost
Metrics
Weight Score
Average Fee Level
15% 5.0 10% 4.0
Competitive Leverage
Competition within Payment Method
15% 2.0
Fixed Cost Rewards
10% 4.0 15% 1.0 15% 5.0 20% 5.0
Interest Payment on Debt
Surcharging TOTAL SCORE
3.8
Merchant Costs Average Fee Level According to CMSPI’s Cost of Payments Analysis, real-time payments average cost is 0.38%. Competitive Leverage Most merchants do not feel pressure to accept real-time payments. Brazil’s PIX is a unique example. Its high user adoption most likely puts pressure on merchants in Brazil to accept. This is due to the government support PIX has experienced which most real-time payments have not had. A similar catalyst is most likely needed in other markets to see other real-time payments successfully penetrate consumer payments. Competition within Payment Method There is not much competition within real-time payments. Fixed Costs Many real-time payment options allow users to use their smartphones to complete transactions by scanning a QR code provided by the merchant or providing a QR code for the merchant to scan when completing a transaction. 847 RTPs are most easily integrated using plug-ins from a merchant’s gateway provider but also can be integrated into the merchant’s checkout via API. 848 849
193
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