Visa CEO, Al Kelly, Calls Real-Time Payment Systems Unreliable and Lacks Protection
During a conference held in New York on Wednesday, May 29, 2019, the CEO of Visa, Al Kelly expressed his positions on real-time payment systems reports Bloomberg.
His overall sentiment regarding the matter appears to be lax, as he does not seem to be fazed by it. In particular, he has been quoted saying that its likes are taking longer to pick up within society, adding that he does not see the need for such a service.
In terms of the implementation and performance of real-time payment systems, he shared:
“I’m not convinced that these are going to take off like crazy. Does the consumer really need funds that much faster?”
According to the news outlet, a US-based, financial institutions-backed association called, The Clearing House, has been promoting real-time payment systems – an initiative that includes 25 owner banks.
As previously reported by The Clearing House, they feel said system, which was first launched in November 2017, is essential as customer needs are constantly evolving. Moreover, they argued that this would be advantageous for businesses that are aiming for “greater speed, efficiency, and security.” Therefore, one might argue Kelly either has poor customer relations, or is simply not working in their interest. But before we jump to conclusion, let’s analyze his arguments.
As for the technical aspects of real-time payment systems, Kelly noted that:
“Some of these systems are not as reliable, not as robust and very unfortunately, don’t have the same protections. If I now have a dispute with you over it and there needs to be some element of charge-back, how’s that going to work. With great difficulty.”
Kelly was recently interviewed by Seeking Alpha’s Harshita to share how far Visa has come in the last 2.5 years along with its overall evolution. Some of the areas he spoke highly of include Visa’s credentials, the B2B, P2P, P2C spaces and user experiences.
“If we look at the last 18 months since our Investor Day, we’ve gone from a little less than $3 billion to over $3.3 billion payment credentials […] If you look at the other side of the market, the supplier […] side of the market, we’ve moved from 44 million merchants to 54 million merchants.”
As for his reasons why there’s room for growth within this field:
“One is that again more into more into more payment flows. We’re looking at the B2B, the P2P […] the P2C disbursement space. And in those cases, we see great opportunities […] The idea that QR codes and mobile-based solutions […] are allowing a merchant to get up and running much faster than in the past.”
All this being said, it is evident that Visa has made significant growth in its evolution. They have paved the path for the existence of various services within the financial sector. Given the Tap service they provide, which makes it easier, convenient and faster to make payments, it is definitely interesting to hear some of the claims he has made in terms of real-time payment systems.
What do you make of the CEO’s opinions? Has he made valid arguments in supporting his view on real-time payment systems? Let us know in the comments below.