Creating a world with instant payments in real time
Instant payments. What is all the fuzz about? Swish in Sweden has been a reality for person-to-person payments and limited corporate usage for a while now. In January, it was also enabled for e-commerce. In Finland, we have now had Siirto for a few months, and in June the platform will be opened for e-commerce as well. Third party payment initiation like PSD2 will be enabled later in the rest of Europe.
Successful ecosystem collaboration
Let us take a deeper look at what we have learned. In December 2016, we had a wild idea in Finland. Let’s kick-off collaboration in open ecosystems to speed up development. Let’s create market standard specification in areas where there is none, or where a single party cannot solve it alone.
We kicked off work packages to design e-commerce payments, in-store payments and linked e-receipts to both. What a great achievement so far. It was the first time that all stakeholders sat down together in the same room. There were many retailers, payment service providers, banks and then also Automatia with Tieto being responsible for the implementation of Siirto-related platform services.
The level of expertise was fantastic and every point of view was taken into consideration. The work was incredibly fast and efficient. All material was agreed to be published as open specs, and there was an open dialog on everything else – but we had a strict rule not to talk about commercial models or pricing. In just a couple of months we collected requirements for Siirto e-commerce and implemented them in the platform provided by Automatia. On March 1st this year, P2P payments were launched and we have over 250.000 users already. Just three months later we will enable the solution for e-commerce.
The future will be empowered by real-time payments
What about development for Swish in Sweden? No official volumes are published yet, but I personally bet we will see extremely fast conversion to use instant payments instead of conventional payment options on several service providers, for example mobile ticketing and e-commerce. Still, we are in the beginning of the journey there as well. So much to learn, so much to gain and change. The volumes are already there for the platform in Sweden, with 5.5 million users. What will eventually change then?
We are already implementing services for instant refunds or collecting your wins into your account in real time. Next, we can start re-thinking the concept of salary payment. Instead of a monthly salary, you could get paid based on completed assignment in real time. We are also rethinking the concept of receipts. It is not just a piece of paper, it is a platform for personal messaging and services. Like renewing your order with a click. Or, if the goods are damaged or polluted, the person who bought them can be reached immediately. There have been so many daily situations and challenges that we have tried to solve with the help of a clumsy solution. I think real-time solutions is the answer.
What should be expected next? In parallel, we have developed Virtual Reality solutions for retailing. Yet in another data driven project we have defined solutions for digital identity for items and recording ownership data for, for example, an apartment or a car – linking that to the financial status of the owner and real-time financial statements of the apartment or the car. We are linking that to public records on community development plans and the statistics available. All that we bring to the virtualized world as augmented reality is extending the physical view with data driven services. Imagine selecting furniture for your new house before it is ready for you to move in. Actually, you do not have to imagine it, you can try it yourself in the Tieto stand at Money 20/20 Europe. Finally, envision what happens when we enable the different financing and credit options for the consumer in that very moment and plug-in Siirto and Swish for instant payments.
Welcome to a real-time world with instant payments.