The number of payment methods keeps expanding, driving a higher volume of payments and further complicating data management processes for businesses. The strength of any organization lies in its ability to efficiently manage data, and this is where automation would make the most significant impact.

An AutoRek report, “Payments Industry Outlook 2023,” highlights the findings of an organizational survey, identifying key challenges, priorities, and readiness for real-time payments in the ever-changing payments sector.

PaymentsJournalKey Challenges from Growing Payment Methods and VolumePaymentsJournal Key Challenges from Growing Payment Methods and VolumePaymentsJournaljQuery(document).ready(function ($){var settings_ap36567071 = { design_skin: "skin-wave" ,autoplay: "off",disable_volume:"default" ,loop:"off" ,cue: "on" ,embedded: "off" ,preload_method:"metadata" ,design_animateplaypause:"off" ,skinwave_dynamicwaves:"off" ,skinwave_enableSpectrum:"off" ,skinwave_enableReflect:"on",settings_backup_type:"full",playfrom:"default",soundcloud_apikey:"" ,skinwave_comments_enable:"off",settings_php_handler:window.ajaxurl,skinwave_wave_mode:"canvas",pcm_data_try_to_generate: "on","pcm_notice": "off","notice_no_media": "on",design_color_bg: "111111",design_color_highlight: "ef6b13",skinwave_wave_mode_canvas_waves_number: "3",skinwave_wave_mode_canvas_waves_padding: "1",skinwave_wave_mode_canvas_reflection_size: "0.25",skinwave_comments_playerid:"36567071",php_retriever:"https://www.paymentsjournal.com/wp-content/plugins/dzs-zoomsounds/soundcloudretriever.php" }; try{ dzsap_init(".ap_idx_409080_29",settings_ap36567071); }catch(err){ console.warn("cannot init player", err); } });

Key Findings in the Payments Industry Outlook 2023 Report

One of the top findings of the survey is the need for businesses to accommodate real-time payments. Aside from speed, the key benefits of real-time payments are that they are accompanied by critical data as well as reasons for exceptions.

“Modern consumers expect instant digital payments,” said Nicholas Botha, Global Payments Lead at AutoRek. “As such, real-time payments are set to become ubiquitous for both national and regional payments networks as authorities and central banks alike continue developing real-time infrastructure to accommodate consumer demand.” (Page 25 of the report)

Currently, real-time payment infrastructures can be found live in more than fifty markets, with more than twenty more to come.

“The focus on real-time payments in the U.S. is obviously becoming something that has not been previously looked at,” Botha said. “Whereas in regions like the UK and the EU, this has been a focus for some time. There has been a transition in focus for the next few years into that sort of real-time payments market, shifting attention from customer acquisition to more middle- and back-office focus.”

Botha continued: “What we try to understand through the reports is in terms of payment: where these organizations are depending on the size of their company, how they are managing certain core functions of their business to be effective in the payments market.”

Although many companies recognize the need for real-time payments, with over 85% of them being ready for the technology in less than 12 months, it is no easy task. The biggest bottleneck can be seen in most back-offices, which can be attributed to legacy infrastructures.

A significant imbalance can be seen in the way back-offices now work. Usually, they create batches of fund transfers that will be processed at pre-determined periods instead of in real-time. Therefore, reconciliations and settlements can take place only at the end of one or more intervals of processing.