Experiencing a FedNow launch hangover? Try this little nugget from The Clearing House, who released stats from the 2nd quarter showing they have processed 500M RTP payments since inception! As a reminder, RTP has been in production for 5 1/2 years.
To put this into perspective, Visa Direct processed 5.9B payments in FY 2022 (which is the period ending Sep 2022). The recent earnings didn't include updated Visa Direct volumes but did indicate growth of 32% in FY Q3, which would suggest a run rate of 7.8B for FY23.
This means that Visa Direct processes more than 5 years worth of TCH's RTP volume every month. This is the power of a network. When you can build a service on top of existing rails, you can go further, faster than trying to build a network from scratch. Visa Direct began to really commercialize the service in 2016, just one year before RTP launched.
Visa Direct also benefits from having both Push and Pull capabilities as well as clearly defined liability and dispute resolution rules. These are also built on top of the existing network model and adapted as needed, whereas new schemes like RTP and Zelle are establishing them from scratch.
To be fair, Visa is also building a network from scratch (B2B Connect) and its growth is much slower than Visa Direct. That is one of the reasons I advocated for a Network of Networks strategy when I was at Visa. Connect in to existing rails and innovate on top of them. It's the Fintech way!
Adding FedNow to the mix is going to increase overall adoption of faster payments in the US market, but I still expect Visa Direct to remain a leader for a very long time.
#fednow #fasterpayments #rtp #realtimepayments #visadirect
That's fantastic news! The launch of HSBC's Zing app, powered by Visa, Currencycloud, and Tink, marks a significant advancement in international financial services. It’s inspiring to see how this collaboration has led to the creation of a platform that prioritizes ease of use, security, and reliability for global users. Looking forward to seeing how Zing will continue to innovate and facilitate seamless international living. Congratulations to James Allan and everyone involved in making this vision a reality!