In a significant advancement for Mexico's financial landscape, ACI Worldwide has joined forces with Mexipay to foster the adoption of real-time payments across the country. The partnership, formally announced on November 28, 2023, aims to utilize ACI's advanced payment platform to integrate ISO 20022 real-time payments and various other payment services into Mexipay's offerings.
"Mexico was an early adopter of real-time payments, with its Sistema de Pagos Electronicos Interbancarios system in place since 2004," shared the companies in a joint press release. They emphasized how the growth of real-time payments has intensified in recent years, noting that approximately one in five individuals within the banked population are now utilizing this innovative payment method.
The introduction of Mexipay’s real-time payments technology is anticipated to go live in early 2024. This initiative will employ the ISO 20022 standard, which is recognized globally for ensuring secure and efficient communication between financial institutions.
"With this partnership, Mexipay will be able to provide access to the unattended small to medium banks segment, as well as the merchant industry," stated Fabian Uribe, co-founder and CEO of Mexipay. He elaborated on the scope of this collaboration, saying, "Through the implementation and operation of our platform built around ACI’s solutions, we are delivering managed services to the market, something that was not possible before in Mexico. That means a complete set of new opportunities."
The move comes at a time when there is a growing interest in real-time payments among consumers, particularly as highlighted in a recent report by PYMNTS and ACI Worldwide. While many consumers are eager to incorporate real-time payments into their financial activities, a significant percentage is unclear about what constitutes a real-time payment. "Only 29% of consumers who claim to have made real-time payments believe that these payments clear immediately," the report found, while others experienced delays that contradicted the concept of immediacy.
Against this backdrop, the report indicates notable hesitance among executives regarding the importance of real-time payments. Just 36% of executives overseeing consumer collections at large firms grasp the urgency of addressing these consumer expectations.
"While this gap in understanding poses a challenge, the growing demand for immediacy and transparency in transactions is a clear signal to businesses to catch up or risk missing out," emphasized the findings from PYMNTS. The study also cited a broader trend in the corporate sector, revealing that traditional payment methods are increasingly falling prey to fraud, with 63% of organizations reporting incidents of check fraud. This vulnerability has prompted many businesses to shift towards more secure real-time payment solutions.
"Real-time payment rails address this problem with a higher level of security against scammers, leading 62% of middle-market companies to choose this option," the report adds, showcasing the sector's pivot to secure financial transactions.
Overall, this partnership between ACI Worldwide and Mexipay is seen as a crucial step towards modernizing payment infrastructures in Mexico, particularly for underserved banks and merchants. The implementation of real-time payment technology is anticipated to open new markets and improve the overall efficiency of financial transactions in the region. As the collaboration unfolds, it will be interesting to observe how the Mexican market adapts to these advancements and whether other sectors will be compelled to follow suit in order to keep pace with the evolving payment landscape.