Trends & Research

Trends & Research

Access the power of data and objective insight. Data from various sources, including NEACH surveys and member interviews, is compiled and made available as white papers, case studies, articles, benchmarking, and industry reports to provide a snapshot of both the current and future payments landscape. 

Published on Tuesday, August 22, 2023

August 2023 Innovating Payments Executive Summary— Businesses Interested in Using Faster Payments for Emerging Use Cases

Welcome to the August 2022 Innovating Payments Executive Summary. The Federal Reserve released the results of its second annual corporate study, revealing that U.S. businesses are increasingly interested in using faster payments for day-to-day business operations. Also in the news, Bernadette Ksepka, Vice President and Deputy Head of Product Management for the FedNow SM Service Program, is calling 2023 a transformative year for the industry. She urges financial institutions to make the necessary financial technology investments to enable instant payments through the FedNow Service.

 On Tuesday, July 26, Nacha released its second Operations Bulletin of 2022, announcing the addition of a late-night ACH file delivery  by 11:30 p.m. ET. The new file delivery will go into effect as soon as September 12. While RDFIs are not required to change their current practices, the addition of the new delivery time creates a decision point, and how core providers handle this later window will also have bearing on what RDFIs can and should do.

For more on these and other stories, read on.


Federal Reserve

Fed’s Second Annual Corporate Study

“The Federal Reserve’s second annual corporate study of financial decision makers’ readiness for faster payments revealed that U.S. businesses are increasingly showing interest in using faster payments for day-to-day business operations,” says the newly released report. “The survey found that while interest in certain faster payment use cases, such as recurring bills and routine payments, remained consistent from the previous year, interest in several emerging use cases saw the greatest growth year over year, as shown below.”

For example, the survey revealed a 67 percent increase in businesses interested in supporting faster/instant payments for mobile order pickup of products and services in-store or for delivery from 2020 to 2021. In addition, the number of businesses interested in faster/instant payments to support just-in-time supply chain payments increased 30 percent from 2020 to 2021.


The report also includes these key findings:

  • Businesses are seeking faster/instant payment solutions because of the key features: quicker access to funds (60%), immediate notification when a payment arrives (58%), the ability to post immediately or automatically to customers' accounts (57%), and the inclusion of remittance details with payments which supports straight-through processing (55%).
  • Consistent with last year’s survey, businesses indicated the faster/instant use cases they’re most interested in include payroll, recurring bill payments, internal transfers, and regular or routine payments.
  • While many results were consistent across different business market segments – such as an interest in immediate access to funds – some segments emphasized certain faster/instant payment features, use cases, and benefits.
  • Nearly 40% of businesses signaled interest in faster/instant payment options that might reduce the overall costs of financial operations.
  • Nearly nine in 10 businesses expect to be ready to make and support 24x7x365 operational faster payments within the next three years.

To view the survey results in their entirety, click here.

2023 Expected to be a Transformative Year for Financial Services

As reported by PYMNTS, 2023 will be a transformative year for financial services, marked by a new addition to the world of instant payments, Bernadette Ksepka, Vice President and Deputy Head of Product Management for the FedNow SM Service Program, according to a recent PYMNTS interview.

“Financial institutions and their service providers are going to be able to use the FedNow Service as a springboard to provide innovative payment services to their customers,” Ksepka told PYMNTS. “[FedNow is] going to be a game-changer for financial institutions. These FIs are going to be able to expand their presence in the payments market.”

Request for Payment will be a key feature when the FedNow Service releases in 2023, allowing financial institutions and other service providers to build instant bill pay services, said PYMNTS.

“Consumers pay more than 15 billion bills annually, and most of that volume currently goes through billers’ websites, not through the banks or credit unions," PYMNTS pointed out. "With the FedNow Service and its Request for Payment feature, banks will be able to bring more of that activity in-house, so to speak, Ksepka said." 

She also pointed out that financial institutions need to make the necessary technology investments to enable instant payments through the FedNow Service, citing new opportunities to innovate and enhance the customer experience.


The Clearing House

The Clearing House (TCH) announced Aug. 2 that Rusiru Gunasena has joined the company as Senior Vice President, RTP® Product Management and Strategy, and will succeed 41-year payments industry veteran Steve Ledford, who is retiring.

Gunasena, a payments and fintech leader with over 20 years of experience across multiple industries, joins TCH from Jack Henry, where he was Managing Director of JHA PayCenter™, the faster payments hub that provides financial institutions with seamless connections to the RTP network. As leader of Jack Henry's faster payments strategy, Gunasena oversaw the onboarding of over 170 banks and credit unions to the RTP network, more than any other third-party banking service provider.

In his role at TCH, Gunasena will oversee the ongoing growth of the RTP network, a modern platform for domestic real-time payments, complete with rich data capabilities and immediate payment confirmation. The RTP network currently reaches 61% of U.S. demand deposit accounts, and more than 260 financial institutions are live on the network.



Also in the news, Nacha released two ACH Operations Bulletins since our last issue:

ACH Operations Bulletin #2-2022: Additional Late Night ACH File Deliveries to Start in         September 2022

“Beginning in mid-September 2022, the ACH Operators—the Federal Reserve and The Clearing House—will implement additional late-night deliveries of ACH files to all Receiving Depository Financial Institutions (RDFIs),” reported Nacha. “Both ACH Operators will offer similar services regarding the additional 11:30 pm Eastern Time deliveries of ACH files.”

“This service enhancement is being implemented in response to ACH industry participant requests,” emphasized the bulletin. “This enhancement will accelerate the delivery of some volume of ACH payments to RDFIs.”

To get a better understanding of the background behind this decision, NEACH sat down with Michael Herd, senior vice president, ACH Network Administration, at Nacha, to discuss this new file delivery window and what it means for community banks and credit unions. You can check out the article here.

What do you think of this new late-night file delivery? Do you plan to leverage it, and if so, how? What impacts will it have on you?

Please take our brief survey to share more, and feel free to offer comments here. NEACH will be providing additional insights as the implementation draws near. In the meantime, contact the Payments Hotline at 855-NEACHQA with any questions.

For more on ACH Operations Bulletin #2-2022, click here.

ACH Operations Bulletin #1-2022: COVID-Related Relief from Certain Nacha Operating Rule Provisions Will Expire on Oct. 1, 2022

“In 2020, Nacha provided relief from certain provisions of the Nacha Operating Rules due to impacts of the Coronavirus pandemic,” stated Nacha. “This relief generally took the form of a policy of non-enforcement of these provisions and the effective dates of some new rules…Nacha has determined to allow this relief to expire as of Oct. 1, 2022."

According to the bulletin, “Of the rules for which additional grace periods were provided in 2020, all such periods have elapsed except for Phase 2 of the Supplemental ACH Data Security rule, which applies the new data security requirements to Originators and Third-Party Senders with ACH volume of two million or more transactions annually. The additional non-enforcement grace period continues through Jun. 30, 2023, for those Originators and Third-Parties working in good faith to implement the rule.”

To learn more, you can read ACH Operations Bulletin #1-2022 here.



According to a news release, on Jul. 28, PayPal announced the Venmo Small Business Grant, a new program for emerging and small businesses that will provide financial grants and mentorship services to 20 new and existing Venmo Business Profile customers. Each of the 20 firms selected will receive $10,000 to cover expenses, such as rent or helping to digitize and promote their businesses.

According to a U.S. Bank study, 82% of businesses that failed cited cash flow problems as a factor in their failure.1  In addition to providing a financial grant, the Venmo Small Business Grant program will give recipients access to technical expertise and mentorship on legal services, financial analysis, digital marketing, and more. These resources will be provided in partnership with PayPal community partners, Start Small, Think Big, and Taproot Foundation, along with PayPal and Venmo employees who will provide mentoring, coaching, and pro bono services.

As reported by PayPal, “Since the launch of Venmo Business Profiles in February 2021, more than 1.5 million small businesses have created profiles to organize, market, and grow their business cost-effectively."



In other news, Jack Henry & Associates, Inc.® announced on Aug. 2 the launch of a refreshed brand that reinforces Jack Henry's 46-year history of providing modern technology and services to the community and regional financial institutions, according to the company’s news release. The company is consolidating its three distinct brands – Jack Henry Banking®, Symitar®, and ProfitStars® – to a singular Jack HenryTM brand. 

“Our rebrand is the outcome of the work we’ve done to modernize our technology, streamline operations, and operate as one company, resulting in a better client experience,” said Jack Henry Board Chair and CEO David Foss. "We now have a platform to speak from a single, consistent voice as we continue to help the community and regional financial institutions strengthen connections with accountholders by offering a full array of solutions and access to a wide network of fintech partners."

As part of its rebranding, Jack Henry introduced a new external website that reflects its evolution and details how it connects possibilities for financial institutions and the people and businesses they serve. The company updated its visual identity to honor its past while bringing the business units together under one Jack Henry brand.



Don’t miss our Annual Summer Member Meeting tomorrow, Wednesday, August 17th, 10 am – 1:30 pm from the comfort of your workspace! Member Meetings are great for networking, exchanging information, and getting real value in an interactive environment. Reserve your seat and register today!

Also, join us for the first NEACH Fraud Symposium on Thursday, Sept. 8, from 9:30 am – 4:30 pm ET. This full-day, virtual event is filled with information, actionable intel, and helpful tips to increase recognition of potential fraud, mitigate exposure, educate account holders, and more.  


AUTHOR: Joe Casali, AAP, NCP
Executive Vice President

As the EVP of Payments Innovation for NEACH, Joe focuses on exploring innovative solutions and technologies that will help position members for success, both now and in the future. Connect with Joe to read more of his blogs, articles, and posts.






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