Daily Fintech: Real-time Payments is a Game-changer

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Bernard Lunn: Facebook will be the biggest payment processor in the world. Photo: Duncan Hull

Bernard Lunn of the Daily Fintech has published a great layman’s overview of real-time payments.

Topics covered include: various types of payments, why it’s all about ledgers, the nuances of clearing and settlement, the challenge of cross-border, and the monumental importance of security when it comes to money.

Lunn’s key takeaway? “Real-time payments changes the game.” He explains:

The reason is simple. Real time changes user behavior. Going from 3 day to 1 day settlement is faster. Going to 2 hour settlement is even faster. In B2B those time differences are vital because time is money and float is highly valuable at scale. However to a consumer who is used to real time social media and news, a few hours seems ridiculously long.

In Lunn’s version of the future, the ability to economically send small transactions in real-time will change the way consumers behave.

Check out Lunn’s post at Daily Fintech.

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