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As a result, he predicted that the entrenchment of faster payments will be a linear progression that moves from consumer-to-consumer (C2C) to consumer-to-business (C2B), then to business-to-consumer (B2C) to business-to-business (B2B). Yet, Kresse pointed out that, ultimately, individual consumer behavior drives changes in business behavior.
With the system joining the existing RTP system, both promising to modernize the way money moves and allow for greater use of instant payments, it seems the shift to real-time payments is 'inevitable'. Whether we will see these services gain traction is tied to what many believe to be a major hurdle–interoperability.
Financial institutions need to be actively exploring usecases for real-time payments within their own organizations for meeting the requirement of their customers. This, FIS noted, can be particularly beneficial in B2B usecases. B2B’s Role In Faster Payments.
Whether payments are moving between individuals (peer to peer, or P2P) or between consumers and businesses (C2B), they flow most easily from like to like — for instance, if the sender wants to use PayPal, the recipient must also have an account. That’s why ubiquity is so desirable. But in an ecosystem like the one in the U.S.,
Early Warning, which bought clearXchange , is expanding its banking network to enable real-time solutions between banks for B2B, B2C, C2B and C2C solutions. P2P is the usecase that everyone uses to rationalize the need, yet is the one where the business case is that consumers won’t pay.
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