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So, the Head of Instant, Retail Payments and Cards at a banking infrastructure vendor has paid a "research and advisory firm" to write a report that states that banks should invest in their products..? 🧐

I think this post on linkedin answers it well: 

https://www.linkedin.com/posts/williampayments_customers-of-major-bank-try-to-withdraw-activity-7291815285487988736-VTV8

"The most likely explanation lies in Stand-In Processing (STIP), a system used by major card networks like Visa and Mastercard, as well as some modern payment processors. STIP is designed to ensure that cardholders can still make payments when their bank’s systems are unavailable due to outages or sporadic technical issues. (...) 

Once Barclays is back online, it will receive a report of approved transactions and deduct the corresponding amounts from customers’ accounts. If an account lacks sufficient funds, the bank typically places it into overdraft."

I guess the banks need to implement some sort of authentication and fraud mechanism. Perhaps some "fraud fund" and charge risk-based fees to incentivize proper solutions. And maybe adding some clear chargeback processes. 

And in sum try to build what the card networks already has built?

I wonder how that will affect the pricing and business model of direct debit 🧐