14 Feb 2025 Deepak Gupta from Volante Technologies

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Off the Rails from the U.S. Faster Payments Council - FPC 54 min 2 speakers 6 chapters transcribed 1 month ago
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What is the Faster Payments Barometer and where can I find it?

Deepak Gupta 1:36
off the rails from the U.S. Foster Payment Council.
Reed Luhtanen 1:59
Hi, I'm Reed Lutanen, Executive Director of the U.S. Faster Payments Council, and this is Off the Rails from the U.S. Faster Payments Council, sponsored by Open Payment Network. This time, we've got a great conversation with Deepak Gupta. We talked through all kinds of things about the upcoming Faster Payments Barometer, which is sponsored by Volante Technologies and produced by the Faster Payments Council to provide lots of great quantitative information about the industry and where things are headed and where the trends are. This conversation is a little bit longer than normal, so I'm going to skip the headlines and we're just going to get right into that conversation with Deepak.
Reed Luhtanen 2:51
All right. We're joined by Deepak Gupta from Volante. Deepak, thanks for joining us.
Deepak Gupta 2:55
Thank you. Thank you for having me, Reid. Appreciate it.
Reed Luhtanen 2:58
All right. Deepak, we want to spend most of our time together talking about the Faster Payments Barometer. I've referenced it already quite a bit on the show based on some of the stats that we put out at the fall member meeting for the FPC. But now we're, of course, excited to announce that it has been released and folks can find it at fasterpaymentscouncil.org in the Knowledge Center. And I guess, first of all, a huge thank you to Volante for sponsoring the barometer once again. It's been a great experience. partnership between FPC and Volante over the last few years. And one of the things I noticed as I looked through the data was the broad buy-in from respondents on the high-level questions. We had 80% of respondents saying faster payments are a must-have.
Reed Luhtanen 3:41
That's up slightly from 78% in 2023. 90% of financial institutions said, that responded at least, said that they're planning to implement at least one type of faster payment So that's all obviously encouraging, yeah?
Deepak Gupta 3:56
Yeah, very, very encouraging.
Reed Luhtanen 3:59
And overall, we had the highest percentage of respondents saying the United States is making satisfactory progress this year. 61% said yes, we're making good progress. But when you cut into that, into the various constituencies who we sort of broke things down into, we actually see some disagreement there, right? So 77% of financial institutions agree with that. but only 28% of business end users and 19% of networks. So what do you think is going on there?
Deepak Gupta 4:30
Yeah, I think the definition of success or the definition of being satisfied is different for different constituencies here. And that's what is different. So when you think about a financial institution, what is the definition of success? Definition of success is, can I receive faster payments? Or can I receive RTP or FedNow? Can I offer it 24-7? Can I provide fraud services around it? Can I do both? Can I do RFP? So it's more technically focused. But if I'm a business user, I'm worried about different things. I take it for granted that my bank can offer it to me. But can they make it available better, faster, cheaper? How is it offered to me? Is it integrated to my ERP or my bill pay? Is it reasonably priced?
Deepak Gupta 5:18
How long does it take to get there? So how complex the implementation is going to be? Are you offering RFP with it or not? So I think the definition is different. And just because the financial institutions think that they have it available doesn't mean that business wants to adopt it very, very quickly. It has to make sense for them to do so.

Why do financial institutions, businesses, and networks disagree on progress for faster payments?

Deepak Gupta 5:37
So I think the definition is different. And that's what you're seeing here. But over time, they will start to converge over time, and you would see more and more business users would start to see value, and success breeds success. As more people, as more businesses adopt faster payments, you would see more satisfaction level go up, and you would see more businesses sign up for that. So I think it's very common when a new offering is offered in the marketplace. It's very uncommon, not very uncommon to see this.
Reed Luhtanen 6:05
Yeah, yeah. And I think you're hitting on some themes that we're definitely going to dig into in some of the other numbers we got back in the survey, especially around things like requests for payment and availability of different services to businesses.

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