How to successfully launch an instant payments infrastructure

In a world where nearly everything is instant, real-time payments are the clear future for our financial ecosystem. This series of articles has delved into the keys to implementing a new payment infrastructure - unlocking the smooth and accurate flow of funds so you can create a seamless experience while reducing costs and inefficiencies.

We've discussed why instant payments are critical and how to collaborate with important stakeholders. Now, it's time to prepare for launch.

Keep the first phase simple

Once you've identified stakeholders and outlined the use cases you want to launch, it's crucial to establish a timeline. We strongly suggest creating a phased timeline based on the use cases you have planned.

Start the first phase by establishing a functioning production environment in which the participating banks can send and receive payments at a basic level. Planning a simple launch is beneficial for several reasons:

1. New systems will inevitably encounter challenges in the beginning. You can ensure easier resolution of early hiccups by limiting the launch's scope and complexity.
2. The introduction of a new instant payment system will trigger surrounding changes, such as the need for 24/7 support or a larger migration to a new messaging standard like ISO 20022. Allowing time for adaptation to these new processes is essential.
3. Despite not having all value-added services enabled from day one, initial transactions will provide value to your participating banks and their customers. Therefore, don't prolong your go-live date to wait for such services: They can be added later. Deliver value to banks and end-users immediately.
4. As banks and end-users start utilizing the system, new ideas and needs will unveil themselves. As they do, you must adapt and be ready to prioritize on the fly.
5. Operators of the platform can begin generating revenue from participating banks, contributing to the funding for future phases of the project.
6. Simplifying the first phase, which can be difficult in a complex environment such as payments, helps set you and your community up for initial success.

Essentially, avoid spending an excessive number of hours planning out every detail of your project. While it's crucial to have your vision of the future ecosystem, it's equally as important to get started.

Factors when launching to market

The benefits of instant payments will only materialize if the platform gains sufficient traction among end-users. While there is no universal manual on how to launch, here are some key factors to keep in mind when planning your launch.

1. Reachability - The efficacy of the network heavily depends on its reachability. A large percentage of participating banks covering a substantial percentage of the community's bank accounts is essential. Notably, the widespread acceptance of Visa and Mastercard credit cards has played a big part in their success within the card payment space, allowing end-users to transact with confidence.
2. Soft launch vs. hard launch - Distinguish between a soft launch and hard launch. Launching early is helpful in building routine and confidence and is what we typically consider a soft launch (i.e., without marketing). Once ready for wider user adoption, it's best to undergo a hard launch through marketing campaigns such as advertisements, influencers, sponsorships, cash back or loyalty programs. This will help you get the transaction uptake needed to boost the launch of the system.
3. Use cases - When planning your hard market launch, ensure you have the proper use cases in place for end-users to be lured in. Recognize that end-users are more interested in the experience itself than the intricacies of the payments, so showcase the new use cases that resonate with their interests.
4. Remove barriers - Payments thrive on volume, so avoid creating barriers like member exclusivity or transaction fees, which will deter uptake of usage. You want to encourage end-users to utilize instant payments by any means possible. Keep in mind that different types of offerings have different levels of price elasticity. Offerings to merchants and businesses are typically more inelastic than offerings to consumers (i.e., consumers do not want to pay for transactions). Ensuring proper uptake on your platform will also move traffic away from legacy systems, ultimately reducing costs associated with manual processes and maintenance.

A strategic approach to launching - prioritizing reachability and accessibility - is crucial for a successful launch and provides a strong foundation for your community's instant payment journey.

Explore how you can attract increased volumes with the latest, easiest-to-use payments technology.

Learn more about developing an instant payments infrastructure by downloading our white paper, From Vision to Reality: Planning Your New Instant Payment Infrastructure.