US Faster Payments Council analyses instant recurring payments

The report, titled 'Navigating Instant Recurring Payments: Consumer, Business, and Financial Institution Perspectives' was spearheaded by the FPC Real-Time Recurring Work Group (RTRWG) and sponsored by BNY Mellon. In essence, it explores the implementation of instant recurring payments from various viewpoints, and it emphasises key components crucial for successful deployments, such as Request for Payment (RfP) and standing approval, aiming to facilitate seamless and secure transactions in the dynamic landscape of instant payments. 

In the official press release, representatives from FPC Real-Time Recurring Work Group noted the significance of instant recurring payments, highlighting their speed, convenience, and security. They also emphasised the importance of collaboration and research in crafting user-friendly features, flexible management options, and security measures. The report aims to address the diverse needs and expectations of consumers, businesses, and financial institutions.

What are the main considerations?

Key considerations outlined in the report include ease of sign-up and use, support for notifications, flexibility in managing scheduled payments, and robust security measures. The RTRWG expressed its intention to pave the way for widespread adoption and innovation in instant recurring payments. 

The report also discusses emerging trends and best practices, offering guidelines for businesses and financial institutions. Recommendations range from strategic banking partnerships to seamless integration with existing systems. 

Officials from BNY Mellon Treasury Services talked about the importance of simplifying digital payment standards to drive increased adoption across the industry, while the FPC Executive Director stressed the importance of leveraging the recommendations outlined in the report to position businesses and financial institutions as leaders in the evolving payments landscape. 

The FPC aims to include diverse perspectives in addressing complex topics such as interoperability, managing security risks and fraud threats, and enhancing financial inclusion and cross-border payments.