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.