Welcome to Innovating Payments' Top three News Headlines for the Week of March 10. In this issue, the BNY Mellon and Datos Insights report, Improving Financial Services Through Faster Payments Rails, reveals new expectations and demands from businesses to their financial services providers. Meanwhile, a new PSCU study highlights a new urgency to credit union innovation. Finally, 'Buy Now Pay Later' usage surges among the 35-and-under crowd.
Read on to learn more.
1. REPORT: Improving Financial Services Through Faster Payment Rails (BNY Mellon)
The momentum of change and innovation in the payments market has accelerated the adoption of new technology and payment rails. Real-time payments have become ingrained in the fabric of the payment landscape and have spawned new expectations and demands from businesses to their financial services providers. Firms embrace innovative solutions that incorporate fast payments, more robust data, and automation tools, and the providers offering those solutions are creating new market opportunities. (Read more.)
2. PSCU Study Adds New Urgency to Credit Union Innovation (PYMNTS)
Credit union (CU) members value the classic benefits associated with CUs, such as lower fees and more access to loan products. Still, PYMNTS Intelligence finds they also show more interest in seamless omnichannel banking, cash management tools and buy now, pay later (BNPL) than non-CU members. Like many digitally savvy consumers, CU members increasingly expect such advanced offerings. If missing, these consumers will switch to financial institutions (FIs) that are more up-to-speed on the latest innovations. (Read more.)
3. 'Buy now, pay later' goes from niche to normal as young people use it for daily essentials (NBC News)
Buying now and paying later is still a popular way to splurge on airfare to Cabo. It's an increasingly common way to buy groceries and lawn furniture, too. Consumers ages 35 and under comprise 53% of "buy now, pay later" users but just 35% of traditional credit card holders, according to LexisNexis Risk Solutions. Many of those core "BNPL" borrowers have grown so comfortable using the installment loans for just-out-of-reach luxuries that they're putting more everyday purchases on them as well. (Read more.)
Where is your financial institution in the real-time payments decisioning process? What innovations has your credit union embraced to increase member retention? How is your financial institution addressing the 'Buy Now, Pay Later' payments shift?
Check back soon for our next issue, highlighting the industry's most pressing and need-to-know developments. Until then, visit us online at Innovating Payments.
AUTHOR: Joe Casali, AAP, APRP
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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