Navigating Challenges in Real-Time Payment Systems in FinTech
DOI:
https://doi.org/10.63282/3050-9262.IJAIDSML-V5I1P105Keywords:
Real-Time Payment Systems, FinTech, Digital Transactions, Cybersecurity, Mobile Payments, Regulatory Compliance, Information Fraud, Blockchain, Financial Inclusion, Open Banking, Al and Payments, Instant Settlements, Digital Finance, 5G PaymentsAbstract
The rapid growth of real-time payment systems is changing banking services by introducing immediate settlement, 24/7 availability, and interoperability. The latter has come to redefine the FinTech sector by enhancing its effectiveness, security, and catalyzing financial inclusion. This paper examines RTP architecture, considers the main drivers of RTP progress, and delineates its industry challenges, including cybersecurity, compliance, fraud detection, and interoperability. By analyzing four cases: M-Pesa in Kenya, UPI in India, Faster Payments in the UK, and the US FedNow-project, this paper gives an overview of RTP implementation, success and limitation from a global perspective. Thereafter, it offers a preview of what the future might hold by examining different technological trends-trajectories for building future real-time digital payments such as blockchain RTP, AI-powered fraud detection, 5G-enabled transaction processing, and open banking integrations. Although RTP offers a host of benefits, still some challenges must be addressed in order to take advantage of them regulatory obstacles, security concerns, and developing market barriers. In an attempt to provide an insight into future development, this paper seeks to present a comprehensive, research-grounded view on RTPs in the shaping of the next little while of the digital financial service
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