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There's a very good reason why FPS, UPI, Zelle and other A2A RTPs DO NOT have fraud protection and chargeback à la credit card.

As I highlighted in Why Don’t UPI / Zelle Provide Fraud Protection?, if overzealous regulators force these MOPs to introduce such credit card-like measures, merchants will stop accepting them.

Any examples of such dummy apps and the genuine apps they impersonate?

Millions customers and shareholders of Tesla trust Elon Musk with their money that's not insured by FDIC. I don't think he'll have a big problem getting millions of people to trust him with their money that will be insured by FDIC.

The whole point of a banking charter is to obviate the need for the common man to do due diligence on the bank in which they deposit their money.

The blockbuster success of Tesla is Exhibit A that nobody cares about "overpromise and underdeliver" ethos as long as whatever is eventually delivered is a step up from the leading incumbent's product / service.

Tesla is also Exhibit A of making a success of something new after half a dozen others have tried the same thing for decades and failed.

Ergo, I won't rush to dismiss Elon Musk's claims regarding banking, however tall they might seem now.

IMO neither should the customer seek financial literacy / wellness advice from banks nor should banks want to provide that to customers.

Inflation went up. Everday stuff got more expensive. Consumers' finances came under stress. Fed increased interest rates to rein inflation in. Did the typical US bank pay more interest on checking account? No, they stuck to their 0.5% interest rates. Ergo banks indirectly caused financial UNwellness of consumers. If consumers still seek financial wellness from banks, I have a beachfront property to sell them in Arizona!

From the bank POV, providing financial literacy could prove disastrous. As Matt Levine pointed out, "A bank with sleepy depositors would do well, a bank with antsy depositors would go bust".

I know you're suggesting small measures like automated savings but that can be achieved with a simple hack - and without getting into too much personalization etc. - where any balance above a certain threshold is automatically swept into a higher yield account. Sweep Accounts like that were common in India - and perhaps USA - 20 years ago but they added to banks' costs without delivering any returns in the form of higher revenues or greater loyalty or whatever, ergo we don't hear much about them now.

There's nothing in automated savings for banks. IMO it will work only via fintechs e.g. Acorn.

These two ways are of course how checkout has worked all along.

Today, I came across a third way. 

I went to Go Daddy website to renew a domain. It showed the PayPal button. In the past, when I would click it, I'd be taken to PayPal login page, where I'd log in, then be taken to an inner page on PayPal website showing Go Daddy name, amount, etc. and I'd click a button and be taken back to Go Daddy website with a Payment Success (or Payment Failed) message. 

What happened today was, I clicked the PayPal button and that's it. I immediately saw the Payment Successful message without being taken to PayPal website. 

This probably is the result of the 0-touch recurring payment mandate I set up - advertently or inadvertently - on PayPal website during my last visit there.

This is quite similar to how a standard credit card payment works - I'm not taken to the card issuer's website but the merchant's website gets some (authorization) message from the card issuer. 

Any idea what this third type of checkout is called? 

While data extracted from any given system in banking is arguably precise, data in banking industry goes through several systems across several companies, and what is received by the receiver most often does not match what is sent by the sender.

Ergo bills and statements are often indecipherable. More in the posts titled Bills And Statements Are Hard To Decipher and Taking Readability Of Bills And Statements To Next Level. (hyperlinks to posts on my company website removed to comply with Finextra Community Rules but these posts should appear on top of Google Search results when searched by their title + "GTM360").

I once saw this narration for a credit entry on my bank statement: EBA/EBA/EQPEAKMGN//20220124184357. Looks very coded and precise and all, but even my bank couldn't explain this transaction or even tell me the name of the payor who transferred this money to my account. 

In my second post, I actually argued that AI / ML may solve this problem!

... or industries even within a given geography e.g. Managing Director is top management position outside of Investment Banking industry in every country. 

LOL. Unlike American companies, "exec" is a midlevel position in Indian companies, including subsidiaries of American companies in India. Like I was "Marketing Executive" in a Top 3 IT company with only three years of work experience. OTOH, General Manager is higher in US companies than Indian companies. Director is the other way around. I could go on and but job titles don't travel too well across geographies. 

"using traditional ACH banking rails."

Wut? Whatever happened to TCH-RTP and FedNow realtime rails?