Latest news with #ElectronicPayments
Reuters
5 days ago
- Business
- Reuters
UK watchdog to tighten rules for payment firms from May 2026
LONDON, Aug 7 (Reuters) - Britain's Financial Conduct Authority (FCA) said on Thursday it would roll out stricter rules for electronic payment firms from May 2026 to better safeguard customers' money. The regulator, which first laid out proposed reforms for payment firms in September, said companies would be required to keep customer money separate from their own funds, so that it could be returned if the firm fails. The payments sector has come under greater scrutiny as more consumers have become exposed to the risk of poor safeguarding. Between 2017 and 2022, the use of current accounts with online money and payment institutions - rather than traditional banks - has surged five-fold, a FCA survey shows, opens new tab. Under the tighter rules, larger payment firms will be subject to monthly reporting and annual audits, and they will be required to conduct daily checks to ensure the right amount of money is being safeguarded to protect customers. The rules will apply to payment institutions, e-money institutions (EMIs) and credit unions that issue e-money, the regulator said. EMIs flooded London over the last decade, benefiting from a lighter regulatory burden compared to banks. Last month foreign exchange broker Argentex, an e-money institution (EMI) since 2018, fell into special administration after succumbing to market volatility following a decline in the company's liquidity position. Failed payment firms had average shortfalls of 65% of their customers' funds over a five-year period to mid-2023, the FCA said. "People rely on payment firms to help manage their financial lives. But too often, when those firms fail, their customers are left out of pocket," said Matthew Long, director of payments and digital assets at the FCA. "We'll be watching closely to see if firms seize the opportunity and make effective improvements that their customers rightly deserve – this will help us to determine whether any further tightening of rules is necessary." UK Finance, a lobby group for the finance industry, said it was important that the new safeguarding rules were assessed for their impact and effectiveness before any further changes were made. "We support a robust and effective safeguarding regime that protects customers without placing unrealistic demands on businesses, particularly smaller firms," a spokesperson said. "Getting the balance right means having rules that are practical, proportionate, and internationally competitive."
Yahoo
23-07-2025
- Business
- Yahoo
Real-time payments: The new standard for cross-border finance
Real-time payments (RTPs) are quickly becoming the heartbeat of modern finance. Their promise goes far beyond speed, offering financial institutions unprecedented transparency, lower operational costs, and improved liquidity management. GlobalData research predicts there will be 575.1 billion real-time transactions by 2028 – accounting for 27.1% of all electronic payments globally. This boom signals a dramatic shift in how money moves. For institutions handling cross-border payments, RTPs are becoming the infrastructure standard – a crucial enabler of efficiency, resilience, and inclusion. As financial ecosystems race to deliver seamless services, the institutions that adopt real-time infrastructure will be best positioned to compete, scale, and serve their customers in ways traditional payment rails cannot. Real-time, real-world impact The narrative around RTPs is shifting from domestic convenience to international transformation. In Southeast Asia, cross-border RTP corridors like Singapore's PayNow and Thailand's PromptPay have redefined expectations, enabling consumers and businesses to send funds instantly and securely across borders. India's UPI link-up with the UAE further reflects how real-time connectivity is unlocking new trade and remittance opportunities. These bilateral integrations represent more than technical progress – they show how real-time rails can serve as the foundation for regional economic development. By bypassing correspondent banking chains and reducing reliance on pre-funded Nostro accounts, RTPs reduce settlement friction and cut costs, making payments more accessible for SMEs, diaspora communities, and fintech challengers alike. Beyond transfers, RTPs are also transforming liquidity management. Financial institutions can now optimise cash positions in real time, without waiting for batch settlements or end-of-day reconciliations. This improves capital efficiency and gives even smaller institutions tools once limited to global banks – enabling fairer competition across the board. Three forces shaping the future of RTPs Interoperability and regulatory convergence: Despite the progress, global RTP adoption remains uneven. Differing regulatory frameworks, AML requirements, and data standards often stand in the way of full interoperability. But signs of convergence are emerging. The EU's Instant Payments Regulation (IPR) is pushing institutions to support instant transfers, with the removal of the €100,000 cap in 2025 set to accelerate adoption. In the US, the launch of FedNow is laying the groundwork for more competition and cross-rail integrations. Risk and fraud management: The speed of RTPs introduces a paradox: while faster settlement boosts efficiency, it also reduces the window to detect and prevent fraud. Financial institutions must now pair RTP with advanced fraud analytics – using AI and real-time transaction scoring to identify anomalies before funds clear. Solutions that incorporate behavioural analysis, geo-location triggers, and multi-layered verification are becoming essential. Alternative digital rails: As traditional RTPs scale, stablecoins and blockchain-based systems are emerging as complementary rails. Stablecoins like USDC and USDT provide instant, transparent settlement across borders – with the added benefit of 24/7 availability. As Clear Junction has seen in our own product rollouts, demand for regulated, fiat-backed digital payment methods is rising fast. These tools aren't just for crypto companies anymore – they're becoming mainstream infrastructure for businesses that require speed, visibility, and control across jurisdictions. Unlike RTPs, which typically operate within domestic or regional banking frameworks, stablecoins operate on global, decentralised networks. This makes them especially attractive for international payments that require continuous uptime, predictable settlement speed, and finality. Businesses dealing with round-the-clock marketplaces – such as crypto exchanges, ecommerce platforms, and cross-border B2B services – can benefit from the always-on nature of stablecoins. That said, stablecoins and RTPs are not in competition – they serve different but complementary purposes. RTPs excel in providing structured, regulated, and bank-integrated pathways, often with deeper consumer protections and established dispute resolution mechanisms. Stablecoins, meanwhile, offer programmable capabilities, faster global reach, and operational efficiency, especially in underbanked or high-cost corridors. The real power lies in how these systems integrate. The next generation of financial infrastructure will not rely solely on traditional rails or decentralised alternatives but will combine the best of both. Institutions that embrace hybrid models – using RTP for regulated domestic flows and stablecoins for agile, cross-border liquidity – will gain an edge in both compliance and customer experience. Clear Junction is actively building these bridges, supporting clients who want to offer stablecoin-based services without stepping outside regulatory frameworks. Our infrastructure is designed to enable fiat-to-stablecoin conversion, on-chain settlement, and compliance-aligned transaction monitoring. This gives institutions confidence to operate in the shifting landscape. Why cross-border RTP infrastructure is a competitive advantage Real-time payments are transforming operations and reshaping how financial institutions position themselves globally. In a world where every second counts, speed becomes strategy. With real-time capabilities, institutions can: Serve customers instantly, reducing churn and boosting satisfaction Streamline treasury operations through real-time cash forecasting Support embedded finance use cases with precise, programmable money flows Meet compliance obligations with enhanced transparency and auditability Importantly, RTPs also support financial inclusion. By removing delays and reducing fees, they empower individuals – especially in emerging markets – to participate more fully in the global financial system. Migrant workers, small businesses, and digitally underserved populations all stand to gain from systems designed around instant access and equitable participation. Our role in this evolution is to provide the backbone infrastructure that makes real-time financial services possible – even in markets where traditional players hesitate to innovate. We focus on enabling interoperability, ensuring compliance, and empowering clients with tools that are resilient, scalable, and future proof. From faster payments to smarter financial systems The rise of real-time payments marks a new era in cross-border finance – one where speed, security, and simplicity converge. The institutions that embrace RTP infrastructure today will be the ones leading tomorrow's financial services landscape. We believe that RTP innovation must be both inclusive and intentional. It's not enough to move faster; we must move better – with infrastructure that's transparent, interoperable, and designed to elevate the entire ecosystem. The future of finance is being written in milliseconds, and those ready to operate in real time will shape what comes next. Nina Papazyan, Director of Product and Banking Relationships, Clear Junction "Real-time payments: The new standard for cross-border finance" was originally created and published by Electronic Payments International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
