What Can the Instant Payment Network Do for Me?
This new era of real-time payment networks is an exciting, but also uncertain time. It’s exciting that financial institutions can finally offer their customers a service that they overwhelmingly want. However, given the relative immaturity of the real-time market in the U.S., coupled with emerging real-time initiatives such as FedNow, it’s hard to know which payment network will work best for an FI and their customers in the long term.
But...what if financial institutions didn’t have to choose? What if instead of committing to a single network, they could have access to an ecosystem of networks that could change with the money movement landscape? That’s the Instant Payment Network, and it’s at the core of what Payveris does. This “network of networks” allows FIs to give their customers unprecedented freedom in how they move their money.
Let’s run through the nuts and bolts. Currently, the Instant Payment Network offers real-time bill payment and presentment from 15,000 billers, and supports more than 250 million annual payment and money movement transactions through ACH, debit and credit card, digital wallet, check, and payment remittance rails. As of today, over 300 financial institutions and 50 million consumers between the U.S. and Canada rely on the Instant Payment Network to quickly and reliably move money and manage their finances.
Sounds impressive, to be sure, but what does the Instant Payment Network actually unlock for FIs? What can it actually do for you, the financial institution? Let’s go through the three main benefits.
Offers FIs future-proofed flexibility through a “network of networks”
As mentioned earlier, there’s been an explosion of payment networks and channels within recent years, and it’s not always clear to FIs which ones they should invest in for the long term. No one can predict the future, but whichever way the industry heads, the Instant Payment Network will be the one working to adapt to the money movement landscape.
That’s because the IPN is purpose-built to be as flexible as possible through the use of APIs. While our engine is connected to various payment rails through necessary means (API, batch, etc.), a front-end API allows clients to automatically access all of the rails and channels that have been connected on the backend. This takes the guesswork and costly investments out of trying to determine which rails and payment methods will dominate the market.
Improves customer engagement and understanding
The struggle for many FIs today is that it can be difficult to provide a bill payment experience that is on par with the experience offered by direct billers. Last year, an Aite Novarica survey found that direct billers captured 76% of all online bill payments, but 75% of consumers report that they’d prefer to pay all of their bills in one place.
While seemingly contradictory, these stats do make sense. As compared to most FIs, direct billers often provide expanded payment types such as card and digital wallet payments, access to robust billing information, and real-time payment confirmations. But for customers paying all of their bills through their direct billers’ websites, this is a fragmented, inconvenient experience.
By offering customers a way to get all their bills electronically via their online banking and a faster, more reliable way to pay bills and move money, the IPN enables FIs to offer a direct billing experience in a single, centralized hub.
But the IPN is more than just bill pay — it’s also a platform for money movement (P2P, A2A, etc.). Customers can experience the same simplicity and convenience of bill pay while transferring money from outside institutions or sending money to a friend. The upshot? Customers never have to leave the FI’s online banking experience. All of their transactions now run through their FI, helping these institutions best understand the spending and money movement habits of their customers, which in turn drives greater engagement opportunities through more personalized offers.
Meets real-time consumer expectations
We don’t call it the Instant Payment Network for nothing. The technology that underpins the IPN might be complex, but for FIs and their customers, it works exactly the way they think money movement should work. You make a payment, and then a few moments later, you see that it went through. No more making payments and not knowing when they’ll post.
On the Instant Payment Network, when you pay a bill, send money to a friend, or transfer funds to another account, you can see the transaction post in near real time. And for FIs who are on the Instant Payment Network, they don’t need to worry about navigating interoperability between payment rails to ensure near real-time transactions — it all just works.
The Instant Payment Network offers FIs and their customers the confidence that their money movement capabilities will always track with their customer needs and the direction the industry heads. That extends to the confidence you can offer to your customers — that when they make a payment, they know exactly where they stand in terms of their own financial health.
But the IPN offers more than just confidence. It’s a platform that optimizes a customer's ability to improve their financial life, and through that, keeps their FI at the heart of all of their money-related decisions. That foundation provides FIs opportunities to deliver more services that further improve financial management and wellness.
Want to learn more about how the Instant Payment Network can meet your specific needs? Let’s talk!