In the coming months, peer-to-peer payments are going to drastically change. To some degree, it already has, but for most Canadians the results are not that apparent…yet.
All this change in the peer-to-peer payments space is not only a result of technology moving at warp-speed and international payments industry developments but because Canadians want a “modern” payments ecosystem. According to ongoing studies by Payments Canada, Canadians want “fast payment options” and “easier payments”.
Peer-to-Peer Payments in Real-Time, a REAL initiative by Payments Canada
It has been almost three years since Payments Canada launched their Modernization Payments initiative. There are advantages and disadvantages to having a “centralized” banking system like we have in Canada. One of the disadvantages is that there are many legacy-systems that need to be updated and integrated; this is a good reason why it will take some time to get it right.
Payments Canada has six elements to The Plan:
1. High-Value Payments System
2. Real-Time Rail
3. Retail Payments and Enhanced AFT
4. Global Regulatory Standards
5. Modern Rules
At PayUp Jack, we are really excited about the Real-Time Rail component. It fits right into our product vision: to provide easy, secure and real-time peer-to-peer payments, using a simple credit card-to-credit card transaction. We are committed to offering "easier payment" tools for Social Organizers, the one person in a group of friends that organizes social activities and needs to collect money from the group.
Specifically, here’s how our strategy aligns with Payments Canada’s goals for the Real-Time Rail project:
1. Provides faster alternatives to less efficient payments options (e.g. cheques and cash);
1. Real-time, credit card-to-credit card transaction;
2. More convenient payment options using simple identifiers, instead of complex banking information;
2. Email as a unique identifier;
3. Supports last-minute payments (e.g. credit card or bill payments) and provides certainty of receipt;
3. Full tracking and reminders tools using the highly secure VISA network.
4. Innovative platform to develop exciting new customer-facing payment products by allowing broadened access with risk based requirements to ensure safety and soundness;
4. Full tracking and reminders tools using the highly secure VISA network.