US and Canada diverge on RTP approach

Ovum unveils the changing face of commercial banking in North America

This new study, entitled “The Rise of Real-Time Payments in North America”, provides new insights into the United States and Canada’s approach to Real-Time Payments.

Icon Solutions initiated this research following the success of its previous paper which focused on the implications of instant payments and PSD2 on cards in Europe. As a follow-up, Ovum set out to explore the North American landscape for Real Time Payments and Open Banking. In contrast with the previous study, this new research places more focus on the corporate drivers of Real Time Payments, who play a much bigger role in this than retail and consumer players in the North American markets. 

Research Highlights:

  • North American commercial bank IT spending set to increase by $3.3 billion growing to $17.1 billion per year by 2021
  • 50 percent of U.S. and 40 percent of Canadian banks plan to further increase investment in RTP systems on a year on year basis
  • Spending on RTP cited as top three priority by 25 percent of U.S. institutions and 20 percent of Canadian institutions
  • Wider investment in ACH and wholesale payment platforms is also set to increase with 40 percent of US and 20 percent of Canadian banks set to boost spend
  • Banks also investing heavily in AI, mobile banking and open APIs, underpinned by RTP infrastructure, to enhance services, differentiate and prepare for open banking

 

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Real time payments