Ensuring Customer Value in Payments topic8

Ensuring Value for Customers

A guide to how customers balance Cost, Time, and Risk when making payments.

Value: A Balancing Act

When making payments, customers constantly weigh three key factors. The "best" choice depends entirely on their specific needs for that transaction.

Cost: The fee for the payment.

Time: How quickly the money arrives.

Risk: The certainty of the payment's success.

ACH / Low-Value Payments

Ideal for high-volume, repetitive payments where cost is the main concern.

• Low Cost: Often free for consumers due to automation and float.
• Slower Time: Settlement is deferred, not instant.
• Higher Risk: Payments can be revocable until final settlement.

Example: Paying monthly utility bills, receiving a salary.

RTGS / High-Value Payments

Used for lower-volume, urgent transactions where speed and certainty are critical.

• Higher Cost: A fee is paid for priority processing.
• Fast Time: Same-day, near-instant settlement.
• Low Risk: Settlement is final and irrevocable.

Example: Completing a property purchase, large business transactions.

Consumer Choice

The market is diverse. Consumers can now choose between traditional banks and modern non-bank Payment Service Providers (PSPs) to find the best fit for their needs, whether they prioritize low cost, innovative features, or service.

The Importance of Guidance

Payment professionals have a key role. By asking about the customer's needs—like the purpose and urgency of the payment—they can explain the options clearly. This empowers the customer to make an informed choice that best suits their situation.

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