In today's fast-paced digital era, money moves with astonishing speed and in diverse directions. At the heart of all transfers lies the crucial concept of time to money – how swiftly funds transition from one place to another and become accessible to the receiving party. This significance is evident in services that impose fees for expedited fund receipt, similar to the expedited shipping charges for online purchases delivered to our homes. The realm of money movement is populated by a long and ever-expanding list of players. Banks, mobile money services, money transfer operators like Western Union, and real-time payment providers all play a vital role.

Applause's Global Client Insights on Real-Time Payments

Applause's global client teams are observing a remarkable surge in real-time payment (RTP) options. These options offer almost instantaneous fund availability, which is highly regarded by businesses of all sizes. The 24-hour accessibility of these payment options makes them ideal for emergency and urgent transfer situations. Examples of RTP platforms include Cash App, Venmo, PayPal, Google Pay, Apple Pay, and other instant payment rails like the Federal Reserve's FedNow service. As of now, the FedNow service has already surpassed 1,000 financial institutions in its network.

Challenges in Testing Transfers

Testing transfers demands the deployment of testers with specific sender and receiver accounts across the globe. Locating these precise accounts can be a daunting task. Additionally, various variant requirements may emerge based on the testing scenario, such as the need to test on specific global networks or a wide range of mobile and desktop devices with diverse operating systems. Consequently, it poses significant challenges for financial institutions and fintechs to conduct internal testing.

Cross-Border Payment Complexities

International borders introduce an extra layer of complexity to money movement. These boundaries bring along a host of difficulties, including varying currencies, fluctuations in exchange rates, compliance with specific anti-money laundering (AML) laws, and diverse local regulations. The transfer process often involves multiple intermediaries, resulting in added fees. These issues can lead to delays or even terminate a transfer or payment. When money is transferred across borders, the question arises: how quickly can the funds be seen and accessed? What fees might be imposed, and when will the user be informed about them?Doucet emphasizes, "Each country has its own regulations. For instance, the UK has recently passed fee-transparency regulations mandating businesses to clearly list all transaction fees upfront, ensuring no surprises for users at the end of a transaction. If a service supports international parties within the UK marketplace, the implications extend beyond a single country. One can imagine the extensive testing required to get this right."

Cross-Border Payment Testing in India

A global financial services provider discovered that credit and debit cards issued outside India were not being accepted at physical merchant locations in India. It became aware that the majority of acquirers, who act as intermediaries between merchants and card-issuing banks, block international card payments due to concerns about fraud or higher commercial rates associated with cross-border card transactions.To provide the most seamless experience for its cardholders, especially tourists in India, the financial services provider sought a deeper understanding of the overall landscape of declined transactions for travelers to India. However, it lacked the necessary infrastructure, processes, and personnel to conduct in-market testing.With a bold goal in mind, the provider aimed to test in many major cities across India. It wanted specific insights into store signage and variations of declined transactions, including when merchants simply declined to process a transaction. It also wanted to test cards issued from a specific number of countries.Applause utilized its global crowdtesting capabilities and fully managed service to develop a detailed testing plan for the targeted cities. In just 43 days, Applause completed the testing and exceeded its goal of delivering 3,000 in-store transaction attempts. The global team conducted 3,304 total store visits and tested 3,121 cards. Applause provided a comprehensive report to the financial services company, filled with thousands of data points and relevant insights, offering direct paths for addressing issues.