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Artikelen 6 Feb 2023

Instant payments are growing in popularity. Real-time gross settlement payment system RT1 now reaches 85% of SEPA Instant Credit Transfers. This enables transactions to be made and received in under five seconds all over Europe. While instant payments boost convenience, consumers and businesses ask whether the increase in speed may compromise security. Let’s look at whether instant payments are also secure payments and can improve customer experiences compared to bank transfers and card payments.

Fraud is on the rise

Fraud attacks are growing more common across the business landscape. Juniper Research predicts that between 2021 and 2025, merchant losses to online payment fraud will exceed $206 billion (€190 billion).

Merchants need to be concerned about the financial losses caused by fraudulent transactions. But they also need to worry about the implication of fraud on future business and customer relations. Consumers who face negative experiences, such as fraud, are less likely to use the same merchant again. 

Merchants can no longer risk offering online experiences that fail to meet customer expectations. And as such, they need to be thoughtful in their payment options. Secure payments can help build better relationships with suppliers, vendors, and consumers, increasing confidence in all parties. They can even result in less reliance on credit when making purchases. 

While there is no golden ticket to escaping fraud, merchants and businesses should know which secure payments are available. Not only that, but which payment types experience the highest level of fraud.

Enhanced fraud detection

Many medium-sized businesses are investing in enhanced detection to improve the security of their payments. They often include the real-time surveillance of operations to detect and prevent fraudulent events.

Switching from cards to instant payments eliminates unauthorised payment errors and card-not-present fraud by removing cards from the equation altogether. Linking accounts directly under an instant payment system allows instantaneous funds transfer, reducing the number of parties involved. Secure payments mean fewer parties and platforms are present across transaction journeys. This reduces the number of entry points for malicious hackers.

Brite Instant Payments are secure payments that use enriched data and sanction screening to confirm identities and reduce risk. This further increases security for both merchants and customers. The continuous monitoring of payment activity means you always know exactly who you’re dealing with. 

Speed and efficiency

Bank transfers and card payments have typically delivered security at the cost of speed and efficiency. For example, BACS was one solution developed in the UK in the 1960s. While considered secure, these payments take three working days to clear. This delay can deliver a poor user experience for both the payer and the payee. Especially if one party is relying on funds to clear to make future purchases.

To improve this experience, instant payments can authenticate transactions much faster. They do not compromise security, so allow for constant cash flow and ongoing business. 

Removing delays in large-scale consumer payments improves the overall supply chain for B2C transactions. Consumers wait less time to receive their goods as payments clear faster.  

The slower payment flows, the higher the risk factor for merchants and the more volatile the system becomes. Cash flow is limited when a business is not paid on time. They may find that they cannot accept new projects, fill large orders or invest in training and equipment. Instant payments make it simpler to take on all these things with reduced risk.

Secure payments and payouts from Brite

With fraud on the rise, both consumers and businesses are looking for ways to keep their money safe. Offering instant payments and payouts with Brite can help merchants make their customers feel secure in making transactions.

Brite Instant Payouts enable merchants to use open banking to securely and instantly receive money from their customers. By doing so, they lower risk levels, improve cash flow and reduce commission fees. 

If your business needs to transfer or receive money quicker and safer than ever before… let’s talk.