Fair Isaac Corp (FICO, Financial), a global leader in analytics software, has released a survey highlighting the current state and future potential of real-time payments (RTP) in the UK. The survey, which included responses from 12,000 individuals across 14 countries, reveals that while a significant portion of UK consumers have engaged with RTP, there remains a notable lack of confidence in its security. The findings suggest that UK banks have an opportunity to increase RTP adoption by addressing security concerns and educating consumers on the benefits of this payment method. The press release was published in November 2024.
Positive Aspects
- 79% of UK consumers have sent RTP, and 73% have received it, indicating a substantial engagement with the payment method.
- FICO's new solution, developed with Jersey Telecom, received the Anti-Fraud Solution award, showcasing innovation in scam detection.
- 28% of UK consumers plan to increase their RTP usage, suggesting potential growth in the market.
Negative Aspects
- 23% of UK consumers are unsure about the security checks involved in RTP processes.
- Only 35% of UK consumers consider RTP more secure than credit cards, below the global average of 51%.
- UK's RTP usage is lower than the global average, with only 16% of business-to-person RTP transactions compared to 31% globally.
Financial Analyst Perspective
From a financial analyst's viewpoint, the survey results indicate a mixed outlook for RTP in the UK. While consumer engagement is high, the lack of confidence in security could hinder further adoption. FICO's efforts to enhance scam detection and promote RTP benefits are crucial steps in addressing these concerns. The potential for increased RTP usage presents an opportunity for banks to capitalize on, provided they can effectively communicate the security measures in place and educate consumers on the advantages of RTP over traditional payment methods.
Market Research Analyst Perspective
As a market research analyst, the survey underscores the importance of consumer education in driving RTP adoption. The disparity between UK and global RTP usage highlights a gap that banks can bridge by focusing on security and communication strategies. The award-winning anti-fraud solution by FICO and Jersey Telecom is a positive development that could enhance consumer trust. However, banks must tailor their communication channels to individual preferences to maximize the impact of their educational efforts and build a robust defense against scams.
Frequently Asked Questions
Q: What percentage of UK consumers have used RTP?
A: 79% have sent RTP, and 73% have received it.
Q: How does UK RTP usage compare to the global average?
A: UK usage is lower, with 79% sending and 73% receiving RTP, compared to 91% and 89% globally.
Q: What is the main concern UK consumers have about RTP?
A: 23% of UK consumers are unsure if RTP processes include enough security checks.
Q: What award did FICO's new solution receive?
A: The Anti-Fraud Solution award at the Credit & Collections Technology Awards in November 2024.
Read the original press release here.
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