🛋️ The two sides of real-time payments

Today, I'm taking a closer look at the rise of real-time payments. There’s a lot of potential for people, governments, and businesses, but it also come with their fair share of challenges.

So, what are those challenges, and how can we tackle them? Are there better solutions on the way? Let’s break it down. 

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🛋️ The two sides of real-time payments

When you hear about real-time payments, it's usually all about the benefits. Instant transfers, better cash flow, and economic growth…

Experts predict global real-time transactions will hit 575 billion by 2028, growing at 17% annually. That's more than a ¼ of all electronic payments worldwide.

But here's what people aren't talking about: the massive challenges and costs that come with making these systems work.

The hidden costs of instant transfers

Inside a single country, real-time payment (RTP) systems like the UK's Faster Payments or India's UPI run like clockwork.

But go global, and things get messy fast.

Every country comes with its own rulebook—different regulations, different tech setups, different standards. Even successful cross-border connections like FAST's links with PromptPay, India's UPI, and Malaysia's DuitNow still face consistency issues.

And while RTP networks are more open than private ones, making them work smoothly across borders is still a major headache.

The tech expertise needed varies wildly from country to country. Each nation brings its own integration rules, governance, and tech capabilities to the table.

Legacy systems – the elephant in the room

Many banks are still running on systems built decades ago. These legacy cores simply can't keep up with real-time processing demands.

But there's hope. Instead of completely rebuilding (which is like changing engines mid-flight), banks are getting smart about it:

• Breaking down old systems into microservices
• Partnering with fintech specialists who already have RTP solutions
• Gradually modernizing piece by piece

Operating without a pause button

Running real-time payments isn't like running a regular banking service. There's no downtime. Ever.

That means:

• Systems need to be available round the clock
• Infrastructure must be bulletproof
• Backup systems need their own backup systems

Cloud services like AWS are helping here, offering automatic backups and geographical redundancy that keeps everything running smoothly.

What's next?

The future of payments is definitely real-time, but we're facing some big hurdles:

• Making different RTP networks talk to each other
• Managing the massive costs of building these systems
• Keeping everything running 24/7 without a hitch

As more countries jump on the RTP bandwagon, solving these challenges will be a make or break for the future of global payments.

The race is on to find solutions that make cross-border real-time payments as smooth as domestic ones.

📌 What will it take to make real-time payments truly global?

🟠 Visa invests $1B in Africa and partners with EFTCorp to drive financial inclusion and digital transformation. 

🟠 Wise offers real-time cross-border payments to the Philippines by connecting to InstaPay, allowing instant transfers up to PHP 50,000.

🟠 HKEX plans to open an office in Riyadh in 2025 to support its presence in the Middle East and engage with local investors. 

🟠 Saudi Arabia's PIF and HKMA are launching a $1 billion fund focused on fintech, manufacturing, renewables, and healthcare to support local industry growth.

🟠IATA to introduce digital currencies in its financial settlement systems, starting with the digital Renminbi in China by the end of 2024, with plans to expand based on industry needs.

🟠 Switchere integrates Volt's open banking for faster and secure direct bank transfers in crypto transactions.

🟠 Spire and Salt Edge are supporting Bahrain’s Open Banking with Corporate Banking APIs, and enabling tailored financial solutions.

🟠 Bybit launched SpaceS, a fly-to-earn game on Telegram that combines space exploration with meme culture, allowing players to enjoy a fun Web3 experience.

🟠FLock.io partners with Animoca Brands to create decentralized AI models using blockchain.

🟠 Crypto market is getting ready for a likely 25 basis point Fed rate cut, which could spark renewed momentum for Bitcoin and other cryptocurrencies.

🟠 Telegram game W-Coin will launch its token in December, with 70% of the supply airdropped to players, as part of its tap-to-earn model.

🟠 Saudi proptech ARKTECH secures $1M in a pre-seed round led by Core Vision Investment to expand its tech-driven utility contract trading platform.

🟠 Tharawat Green Exchange (TGE) raises $450K from Adaverse to boost its blockchain platform for carbon offsetting and environmental sustainability in Saudi Arabia.

🟠 Nabt raised $1.5 million in seed funding to improve its agritech platform that connects farmers directly with businesses.

🟠 Fincart raises funds from Jedar Capital to streamline last-mile delivery for eCommerce SMBs  across Egypt and MENA.

🟠 NorthLadder secures $10M in Series B funding led by tali ventures to drive global expansion and upgrade its device trade-in platform.

From Retail Giant to Fintech Powerhouse: The Magalu Model 

Magazine Luiza’s (Magalu) Embedded Finance strategy in Brazil is strategically carved through a multi-pronged approach—building, partnering, and acquiring. Starting with in-house innovation, it offers consignment credit through Consorcia Magalu and taps into Open Banking via strategic licenses. But the real edge lies in its partnership-driven expansion—from credit products and insurance with Itaú and CARDIF, to BNPL and payments with Visa and GIRO, multiplying its offerings under MagaluPay. Its acquisitive growth—with Stoq and Hub Fintech—cements its position as a full-stack financial powerhouse. These initiatives enable them to offer seamless credit, insurance, and payment solutions across its vast customer base. 

Want to uncover the full strategy behind Magalu’s embedded finance success? Dive into the detailed analysis to see how their “build-partner-acquire” approach is setting new benchmarks in the LATAM fintech landscape.

This week on Couchonomics with Arjun, I had the pleasure of sitting down with Maher Loubieh, the Co-Founder & CEO of HALA. We looked into how HALA is redefining financial services for Saudi Arabia’s small businesses. Maher shared their journey from focusing on P2P payments in the B2C world to becoming a major partner for micro and small enterprises. We talked about the unique challenges these businesses face and how HALA is stepping up to meet their needs. Tune in for this insightful episode by clicking here. 

Now, a quick break for your wellness. Chief Wellness Officer at FAB Diego Carrete is on a mission to help executives get fit, increase their energy, and live longer.

Today, he shares 3 habits that drain your testosterone. 

Hello there, 

If you're looking to boost your testosterone levels, it might be time to take a closer look at what's lurking in your pantry. 

Many common foods can undermine your hormone health, leading to fatigue and mood swings.  

Here are five foods to ditch for a healthier, more energized you: 

1. Alcohol: Heavy drinking can lower testosterone and harm fertility. Alcohol interferes with the release of gonadotropin-releasing hormone, which regulates the reproductive system.
2. Sugar: Research shows a clear connection between high-sugar diets and lowered testosterone levels.
3. Vegetable oils: Many vegetable oils are high in polyunsaturated fatty acids, which in large amounts have been linked to lower testosterone levels. I get my oils from my kinesiologist in Spain, Jesús Talón, who produces the world’s number-one-ranked olive oil.
4. Trans fats: Found mainly in processed foods, trans fats are harmful to health in general, including testosterone levels.
5. Soy: A study from 2005 involving 35 men found that drinking soy protein for 57 days led to reduced testosterone levels. Another study in rats showed that consuming phytoestrogens (found in soy) lowered testosterone levels.

Making small changes in your diet can lead to big improvements in your testosterone levels.

That’s it for now. Found this helpful? Share this with someone who needs it.

See you next week, where we'll talk about how I increased my testosterone levels by 21.93 times.

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