The second day of EBAday 2024 in Lisbon featured engaging panel discussions centered on real-time payments.
During the panel titled ‘Accelerating the Creation of Real-Time Currency Corridors,’ industry experts explored the potential of cross-border real-time payments. Among the speakers were Tapan Agarwal from Intellect Design Arena, Zennon Kapron from Kapronasia Singapore, Piers Marais from Currencycloud, and Paul Francis Walvik-Joynt from Mastercard.
Marais highlighted that while discussing cross-border payments, it is essential to recognize that money often remains within domestic payments rather than moving across borders. He noted the UK’s leadership in real-time payment capabilities, attributing it to a technological and cultural mindset supporting digital innovation. He emphasized the role of a progressive regulatory framework that empowers non-banks to disrupt traditional banking, thereby enhancing customer experiences in the UK’s instant payments ecosystem.
Walvik-Joynt pointed out that understanding immediate cross-border payments begins with domestic experiences. He emphasized that trust in transactions is crucial. Furthermore, he stressed the importance of collaboration in creating a favorable environment for global adoption of real-time payment schemes, highlighting regulatory incentives across Europe and the necessity of building trust with customers.
Marais affirmed Walvik-Joynt’s insights, stating that the era of slow transactions is over, and global systems must rely on each other to improve instant payment infrastructure while upgrading legacy systems.
Kapron addressed regulatory hurdles in regions like ASEAN, rather than technological limitations, noting that addressing these regulatory challenges is vital for progress. He mentioned the need for standardization to avoid a fragmented system of inefficient connections.
Agarwal concluded by discussing how banks leverage new technologies to accelerate instant payments, sharing a recent example of a swift cross-border transaction made through Ripple.
In another panel titled ‘Real-Time Payments Across the Globe,’ speakers including Dan Baum from FedNow, Kjeld Herreman from RedCompass Labs, Uwe Klatt from GEVA Group, Rob Magee from Australian Payments Network, and Isabel Schmidt from BNY discussed the global evolution of real-time payments.
Baum noted FedNow’s recent launch of an instant payments system and underscored the need for infrastructure that supports international payments. Magee acknowledged the slow adoption of the NPP in Australia but forecasted growth as the existing batch system approaches its end of life in 2030.
Baum highlighted the importance of maintaining connectivity to build value as companies scale, while Schmidt pointed out that varied regulations create friction despite a shared language in ISO 20022. She emphasized the necessity for consistency to facilitate global cooperation.
Klatt elaborated on the legal and cost challenges corporates face and the issues stemming from liability between banks. Herreman remarked on the significance of rich data while acknowledging ongoing communication challenges, particularly in services like Verification of Payee. He concluded that while progress has been made in interoperability with ISO 20022, further work is needed to efficiently manage diverse standards.