Dovetail Smart Gateway Solution for US Real-time Payments

Real-time payments – the ability for a beneficiary to receive good funds from a sender in a few seconds or less – is already a reality in the UK, Singapore, and some other countries. The US now has plans to join this revolution, with estimates for “go live” of a new platform varying from as soon as late 2016 to early 2018. Whatever the schedule, real-time payments will drive the most significant transformation in the US payments landscape since the introduction of today’s ACH and wire electronic payment mechanisms.

How should US banks capitalize on the opportunity? Longer term, real-time payments will be an integral part of all customer offerings, and banks will need to provide real-time, 24×7 payment services in all segments to be competitive. This will necessitate modernization of much of the bank’s existing payment infrastructure. As the market continues to pick up pace and product development cycles further reduce, those banks that shift from multiple legacy systems to a single payment services hub will gain the advantage through efficiency, resiliency and time to market. However, in the short term, there will be more urgent needs to launch key real-time payment offerings. Without the lead-time to effectively plan these into a more strategic modernization, such initiatives will compete for funding and most likely delay longer term progress.

Dovetail offers a fresh alternative. The Dovetail Smart Gateway Solution for US Real-time Payments allows banks to quickly implement a connection to one or more of the soon-to-be-live US real-time payments clearings without requiring replacement or modification of legacy systems.

Key benefits:

  • Minimal system impact – reuses existing channel and payment system message flows to accelerate time to market and reduce deployment costs
  • Lightweight and easy to deploy – unlike a full payment system, incorporates only those features required for 24x7x365 gateway operation and clearing connectivity, minimizing up-front investment and maximizing return on market opportunity
  • Support for many existing real-time payment schemes (that use ISO20022 and ISO8583), and working closely with The Clearing House and others as they define and develop their schemes
  • Highly scalable on low-cost commodity hardware
  • Extensible – a bank can start with a single connector and expand in the future to ACH and wire, as well as SWIFT

As with all Dovetail solutions, the Dovetail Smart Gateway Solution for US Real-time Payments is based on the Dovetail Transaction Architecture. This provides a set of core transaction management functions, with additional solution options to address specific business needs. The Smart Gateway Solution can thus be easily extended to a complete Dovetail Payment Solution, for banks wishing to take a progressive enablement approach to end-to-end real-time payment processing.