Payments Networks that Put America's to Shame
November 25, 2013 11:26 AM
The U.S. lags far behind much of the world in transferring funds rapidly from the bank account of one party to another's. Times vary by bank, but recipients commonly wait days to receive payments. Here's a look at five countries where consumers and businesses enjoy close to real-time to transferred funds.
Related Articles:
(Image: Thinkstock)
Mexico
Year Launched: 2004
Who Led the Charge: The central bank
How it Works: Individual and corporate customers can use online banking tools to make payments in seconds. Some banks charge for individuals upfront fees, while others fold them into monthly online banking charges.
Source:Banco de Mexico website
Who Led the Charge: The central bank
How it Works: Individual and corporate customers can use online banking tools to make payments in seconds. Some banks charge for individuals upfront fees, while others fold them into monthly online banking charges.
Source:
(Image: Thinkstock)
South Africa
Year Launched: 2006
Who Led the Charge: Commercial banks
How it Works: The system, known as real-time clearing, is offered in branches, over the phone and via online banking. As of 2011, banks were charging their customers around $1 for each transaction, a premium over the price of slower Internet and mobile payments.
Sources:Payments Association of South Africa website ; Chicago Fed paper
Who Led the Charge: Commercial banks
How it Works: The system, known as real-time clearing, is offered in branches, over the phone and via online banking. As of 2011, banks were charging their customers around $1 for each transaction, a premium over the price of slower Internet and mobile payments.
Sources:
(Image: Thinkstock)
United Kingdom
Year Launched: 2008
Who Led the Charge: Financial regulators
How it Works: The Faster Payments service is available to customers at all U.K. banks. Consumers and businesses typically send money by phone or online. The service is available for one-time, recurring and corporate bulk payments.
Source:Faster Payments website
Who Led the Charge: Financial regulators
How it Works: The Faster Payments service is available to customers at all U.K. banks. Consumers and businesses typically send money by phone or online. The service is available for one-time, recurring and corporate bulk payments.
Source:
(Image: Thinkstock)
Sweden
Year Launched: 2012
Who Led the Charge: Commercial banks
How it Works: Sweden's system - introduced to the public under the product name Swish - was conceived as a mobile payments system. Once a payment is sent, it becomes available in the recipient's bank account within seconds and works around the clock. Initially free, Swish now carries a fee.
Sources:Bankgirot's website ; Fundtech, "Immediate Payments - Innovation is Knocking" white paper
Who Led the Charge: Commercial banks
How it Works: Sweden's system - introduced to the public under the product name Swish - was conceived as a mobile payments system. Once a payment is sent, it becomes available in the recipient's bank account within seconds and works around the clock. Initially free, Swish now carries a fee.
Sources:
(Image: Thinkstock)
Australia
Year Launched: In development
Who Led the Charge: Australia's central bank
How it Works: The system's architects are aiming to launch Australia's New Payment Platform by late 2016 for use around the clock. It aims to allow consumers and businesses to make payments in real time and for funds to become available to the recipient almost immediately. Australia's system will allow banks to develop their own add-on services for customers.
Sources:Fundtech, "Immediate Payments - Innovation is Knocking" white paper ; Australian Payments Clearing Association website
Who Led the Charge: Australia's central bank
How it Works: The system's architects are aiming to launch Australia's New Payment Platform by late 2016 for use around the clock. It aims to allow consumers and businesses to make payments in real time and for funds to become available to the recipient almost immediately. Australia's system will allow banks to develop their own add-on services for customers.
Sources:
(Image: Thinkstock)
