Fraudsters too gain ground as real-time payment systems grow

There is a need for the technologies behind the real-time payment systems to gain a march over the methods of fraudsters:

- Mohan

The term real-time payments is commonplace today. Yet, it connotes a whole lot of concepts, especially signifying the efficiency of today’s payments system. In fact, real-time payments have evolved in a number of ways, including in terms of technology (enabling it to be of universal operability), omnipresence (most countries have developed the real-time payment capabilities), increasing number of payment service providers (the latest to get on to the bandwagon are P2P payment providers and fintechs who have developed and operated mobile payment services), payment apps (the ubiquitous UPI of NPCI and the apps like Google Pay, PhonePe and Pockets by ICICI), cross-border payment systems (wire transfers, international credit card payments, global ACH payments etc). They are faster and are acquiring significant importance in the payment landscape.

MULTI-BENEFITS

Real-time payments are described as electronic payment systems that ensure instantaneous settlements, regardless of time or day or geography, impacting the efficiency of the money management system. They bring in very immediate benefits like better and efficient cash flow management, lesser levels of risk of fraud and substantial benefits, including enhanced cash flow management, reduced risks, including risk of fraud (They use AI and ML algorithms to monitor and detect suspicious patterns instantly and use advanced encryption methods, tokenization and multi-factor authentication), and vastly improved customer experiences.

Some of the efficient real-time payment systems across the world are the US Clearing House RTP Network, Federal Reserve’s FedNow, the UK’s Faster Payments Service (FPS), the New Payments Platform, or NPP of Australia, the SWIFT Global Payment Innovation (GPI) Instant service, and of course India’s Unified Payments Interface, or UPI.