Welcome to Innovating Payments Top 3 News Headlines. The Federal Reserve launched new educational resources for the U.S. payments industry to facilitate preparation and ecosystem innovation. The new real-time payments tools include the FedNow(SM) Explorer website, an experiential platform featuring curated content and business tools to support the real-time payments journey, a new Service Provider Showcase to support end-to-end development of the instant payments ecosystem and FedNow Service implementation, and more.
According to the October 2021 Disbursements Tracker, a PYMNTS and Ingo Money collaboration, 90 percent of businesses are looking to accelerate their payments within the next three years. "The growing demand for faster disbursements has become a key driver in businesses' decisions when selecting banking partners," reports PYMNTS. Two-thirds of businesses surveyed also indicated that the ability to accelerate payments would be a key driver in changing bank partners.
Also making headlines, Nacha announced its Q3 numbers this week with ACH Network volume up a full 7.7 percent. B2B volume growth continued with 1.4 billion B2B payments, an increase of 18.7% from the same time in 2020. Healthcare payments also passed the 100 million mark with 109.4 million payments, up 15.8%.
Read on to learn more.
1. Federal Reserve Rolls Out Resources Ahead of Instant Payment Launch (Finextra)
The Federal Reserve today launched new resources for the U.S. payments industry to facilitate education, preparation and ecosystem innovation in support of instant payments, a type of faster payment that provides payees with immediate access to funds, enabled by real-time final settlement between financial institutions. "End users have accelerated their use of digital payments, including instant payments," said Shonda Clay, the Federal Reserve's chief of customer and industry engagement. "The Federal Reserve is offering new tools to help payments stakeholders better understand and address this market, including providing instant payments education and helping them prepare to adopt the FedNow(SM) Service for instant payments when it is launched in 2023." Read more.
2. 90% of Businesses are Looking to Accelerate Their Payments Within the Next 3 Years (PYMNTS.com)
Businesses angling for a competitive advantage are clamoring for instant payment options for everything from managing payroll to paying vendors. Instant payments such as digital wallets keep businesses on the cutting edge of innovation and allow them to share the speed with their customers and vendors. As a result, 90% of businesses are looking to accelerate their payments within the next three years, according to the October 2021 Disbursements Tracker, a PYMNTS and Ingo Money collaboration. Read more.
3. ACH Network Volume Up 7.7% in Third Quarter; Strong B2B Growth Continues as Healthcare Claims Pass 100M Mark (nacha.org)
With business-to-business (B2B) showing particularly strong growth, and healthcare claim payments setting a record, the modern ACH Network recorded a 7.7% increase in payment volume during the third quarter of 2021. There were 7.3 billion payments on the ACH Network in the third quarter, 520 million more than a year earlier. The value of those payments, $18.1 trillion, reflects a rise of 13.8%. As it has throughout the pandemic, B2B volume continued its strong growth. There were 1.4 billion B2B payments, an increase of 18.7% from the same time in 2020. (Read more.)
How will you use the new Federal Reserve resources to educate your staff? How is your financial institution preparing to meet the needs of the 90 percent of businesses that say they're looking to accelerate payments in the next three years? Do you see similar trends in ACH Network growth?
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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.