Nacha’s Smarter Faster Payments conference in New Orleans showcased the growing momentum behind real-time payments and their transformative potential across various sectors. However, sessions also acknowledged the continuing importance of traditional methods like wire transfers, ACH, and cheques, each facing modernisation challenges.
One session focused on the business case and ROI for connecting to instant payment systems, highlighting their strategic significance. Commercial use cases such as payroll and disbursements were discussed, alongside the importance of API connectivity. Bridget Hall from ACI Worldwide explored these use cases, mentioning the innovative aspect of using real-time payments for tax returns.
Hall noted that it’s not just about speeding up tax payments but ensuring they are timely. Melissa Ashley from Corporate One Federal Credit Union emphasized that for credit unions, achieving same-day transaction completion represents significant progress—but it requires adapting to new systems rather than converting existing ones. She stressed the need for all teams, including operations, accounting, IT, and compliance, to be well-prepared.
Jim Colassano from The Clearing House discussed the focus on enabling banks to send and receive instant payments, driven by the enhanced user experience that real-time payments provide. He illustrated this by describing how users expect instant feedback when transferring money to accounts, encouraging banks to enhance their services accordingly.
Mark Ranta from Ernst & Young stated that readiness has become the most crucial factor in the implementation of real-time payment systems. He clarified that these projects have shifted from multi-year timelines to just weeks or months, greatly speeding up the decision-making and launch process.
A subsequent panel discussed the resilience of core payment systems like wire transfers, ACH, and cheques amid the rise of new technologies. It was asserted that wire transfers are essential for modernisation and transparency, while ACH continues to demonstrate adaptability.
The relevance of cheques and cash was reiterated, emphasizing the need to maintain public trust and adapt to shifting consumer preferences. Allison Shonerd from Bank of America addressed questions regarding the Federal Reserve’s announcement to extend net settlement services over the weekend, discussing both opportunities and challenges, including managing fraud and operational continuity during new processing hours.
Devon Marsh of Nacha mentioned considerations around potentially adding a fourth same-day ACH window, noting concerns about settlement risk during weekends. Tony Gerevics from JP Morgan Chase concluded by discussing routing decisions for payment activities and emphasizing that cash remains an effective payment method, especially during crises, highlighting that no payment rail is vanishing.