Rapid Payments:
Quicker than Cash

Ultimately, Stocken says, we expect rapid payments to replace some of the use of physical cash. “Think of physical cash,” he says. “How quickly can you transfer value? It’s as quick as handing over a note. It’s instantaneous. The transfer of value is immediate. It’s irrevocable, so once I’ve given you my cash you’ve got it and I can’t take it back. I also need to know very little about you. I don’t need to know your bank account number to give you cash, and I don’t need to capture your banking details. I can just hand it to you. It’s unbelievably convenient, it’s immediate and it’s a free transaction.”

But while all of that is true, cash comes with its own limitations. “It’s very expensive for a business to handle cash because it has to bring the cash into its account, which comes with cash deposit fees,” says Stocken. “Rapid payments are electronic, so it removes that cost to the business. There’s also no physical cash handling, which removes the related security concerns. Also – and importantly – rapid payments are very competitive when it comes to remote transactions.”

Cash works for physical, face-to-face, over-the-counter payments. Add geographic distance, and the practical problems are immediately obvious. This is why Stocken says: “The advantage is that while rapid payments are as easy as cash, the two parties don’t have to be in each other’s physical presence. Cash can’t compete with that.”