Broadridge Launches Instant Payments Service, Aligned with New EU Regulations

Rhea-AI Summary

Broadridge Financial Solutions (NYSE:BR) has launched a new Instant Payments Service, offering a resilient and scalable managed service for real-time money transfers. The service operates 24/7/365, processing transactions in under 10 seconds from payer to beneficiary. It utilizes the Swift Alliance Gateway Instant (AGI) and connects with SwiftNet Instant for continuous exchange of instant transactions.

This launch aligns with recent EU regulations mandating euro instant credit transfers, with key compliance deadlines set for 2025. While currently focused on the Eurozone, encompassing 20 countries, the service is positioned for global expansion. Instant payments are expected to become the industry standard, particularly for recurring transactions like bill payments.

Positive

• Launch of new Instant Payments Service, enhancing Broadridge's product offerings
• Alignment with EU regulations, positioning Broadridge to meet new compliance standards
• Potential for global expansion beyond the Eurozone
• Service operates 24/7/365 with transaction processing times under 10 seconds

Negative

• None.

Insights

Financial Technology Expert

Broadridge's launch of its Instant Payments Service marks a significant advancement in the fintech sector, particularly for European financial institutions. The service's ability to process transactions in under 10 seconds, 24/7/365, positions Broadridge as a frontrunner in meeting the upcoming EU regulations on instant credit transfers.

The use of Swift Alliance Gateway Instant (AGI) and SwiftNet Instant demonstrates a robust technological foundation, important for maintaining high availability and resilience in real-time payment systems. This infrastructure could give Broadridge a competitive edge as instant payments become the norm, especially for recurring transactions and with the growing adoption of request-to-pay services.

While initially focused on the Eurozone, the potential for global expansion suggests long-term growth opportunities for Broadridge. However, the success of this service will depend on its adoption rate among financial institutions and its ability to adapt to varying regulatory requirements across different regions.

Regulatory Compliance Analyst

The timing of Broadridge's Instant Payments Service launch is strategically aligned with the new EU regulations mandating euro instant credit transfers. This proactive approach positions Broadridge's clients favorably to meet the 2025 compliance deadlines, potentially saving them significant time and resources in regulatory adaptation.

The service's full compliance with EU requirements provides a turnkey solution for financial institutions, reducing their regulatory burden and risk. As instant payments become the industry standard, early adopters of compliant solutions like Broadridge's may gain a competitive advantage in customer acquisition and retention.

The global expansion potential of the service indicates Broadridge's forward-thinking approach to regulatory trends. However, the company will need to remain vigilant and adaptable to diverse regulatory landscapes as it expands beyond the Eurozone, which could present both opportunities and challenges for sustained growth.

NEW YORK and LONDON and FRANKFURT, Germany, Oct. 17, 2024 /PRNewswire/ -- Broadridge Financial Solutions, Inc. (NYSE:BR), a global Fintech leader, today announced the launch of its highly resilient and scalable managed service for connectivity, message processing and workflow management for instant payments. The Broadridge service supports real-time money transfers, operating 24/7/365, with transaction processing times of under 10 seconds from payer to beneficiary.

Broadridge's Instant Payments Service utilises the Swift Alliance Gateway Instant (AGI), which offers a highly resilient infrastructure designed specifically to support instant payments messages, connecting with SwiftNet Instant to offer 24/7 availability and continuous and efficient exchange of instant transactions.

"We are thrilled to introduce our new Instant Payments service, which sets a new benchmark for resiliency and availability in the financial services industry," said Heidi Dittmar, Head of Broadridge's Swift services business and Country Head for Germany. "This innovative technology stack enables businesses and individuals to benefit from instant payments across a variety of use cases, from payroll to refunds, enhancing both operational efficiency and customer satisfaction."

The launch of Broadridge's Instant Payments service aligns with recent EU regulations mandating the facilitation of euro instant credit transfers. These regulations are expected to accelerate the adoption of instant payments across Europe, with key compliance deadlines set for 2025. Broadridge's infrastructure supports these requirements in full, ensuring financial institutions are well-positioned to meet the new standards.

Instant payments are expected to become the industry standard, particularly for recurring transactions such as bill payments. The growing adoption of request for payments is anticipated to further drive this shift, making instant payments the preferred method for financial services.

While currently focused on the Eurozone, which encompasses 20 countries, Broadridge's Instant Payments service is well-positioned for global expansion as it adapts to evolving regulatory requirements and growing customer demand worldwide.

"We're committed to helping financial institutions stay ahead in an evolving regulatory landscape while delivering seamless, real-time payment experiences for their customers," said Kai Marzenell, Director of Swift Product Management at Broadridge. "Our Instant Payments service not only enables compliance with new EU regulations but also positions banks and payment service providers to capitalize on future innovations in the global payments ecosystem."

About Broadridge

Broadridge Financial Solutions (NYSE: BR), is a global technology leader with the trusted expertise and transformative technology to help clients and the financial services industry operate, innovate, and grow. We power investing, governance, and communications for our clients – driving operational resiliency, elevating business performance, and transforming investor experiences. 

Our technology and operations platforms process and generate over 7 billion communications per year and underpin the daily trading of more than $10 trillion of securities globally. A certified Great Place to Work®, Broadridge is part of the S&P 500® Index, employing over 14,000 associates in 21 countries.

For more information, please visit www.broadridge.com. 

Broadridge Contacts:

Investors:
Edings Thibault
Head of Investor Relations, Broadridge
broadridgeir@broadridge.com

Media:
Gregg Rosenberg
Global Head of Corporate Communications 
Gregg.Rosenberg@broadridge.com 

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/broadridge-launches-instant-payments-service-aligned-with-new-eu-regulations-302278256.html

SOURCE Broadridge Financial Solutions, Inc.

FAQ

What is Broadridge's new Instant Payments Service?

Broadridge's Instant Payments Service is a managed service for connectivity, message processing, and workflow management for real-time money transfers, operating 24/7/365 with transaction processing times under 10 seconds.

How does Broadridge's Instant Payments Service align with EU regulations?

The service aligns with recent EU regulations mandating the facilitation of euro instant credit transfers, with key compliance deadlines set for 2025, ensuring financial institutions can meet new standards.

What technology does Broadridge's Instant Payments Service use?

The service utilizes the Swift Alliance Gateway Instant (AGI) and connects with SwiftNet Instant for continuous exchange of instant transactions.

Where is Broadridge's (BR) Instant Payments Service currently focused?

The service is currently focused on the Eurozone, which encompasses 20 countries, but is positioned for global expansion as regulations and customer demand evolve worldwide.