Will RTGS and ACH payment systems become obsolete once faster payment systems like Australia’s NPP are fully implemented?
Payments
Asked by Question Bot05/Feb/20171 answer
1 Answer
F
Faisal Khan
Answered 05/Feb/2017
Thanks for the A2A.
Too many questions, but I will answer your primary question.
RTGS will not die out. It is used primarily for clearance of larger payments and will continue to be in place for a long time. Even net-off / deferred settlement would be done on the RTGS, so that is not going away anytime soon.
ACH (in the US) will remain. There would be tiered approaches for payments in the initial period: 3-day, 1 day, instant. etc. The ACH payment system in the US has its claws in so many entities, that even rolling out a same-day payment settlement system will take time for the market to morph and transition over. The US is a HUGE market by any comparison.
Too many questions, but I will answer your primary question.
RTGS will not die out. It is used primarily for clearance of larger payments and will continue to be in place for a long time. Even net-off / deferred settlement would be done on the RTGS, so that is not going away anytime soon.
ACH (in the US) will remain. There would be tiered approaches for payments in the initial period: 3-day, 1 day, instant. etc. The ACH payment system in the US has its claws in so many entities, that even rolling out a same-day payment settlement system will take time for the market to morph and transition over. The US is a HUGE market by any comparison.