Welcome to Innovating Payments Top 3 News Headlines for the week of May 15. If this issue's headlines are any indication, faster payments have hit an inflection point. A recently released Federal Reserve survey shows that U.S. consumers are seeking faster payments options to fit their digital lives. According to the survey, access to faster payments through their financial institution is a satisfaction driver for 70 percent of consumers. A new report released from PYMNTS and The Clearing House reveals, among other things, that 75 percent of companies surveyed use real-time payments for receiving payments and say it helps them manage their cash flow. And according to PYMNTS.com, "instant payments could change the dynamics of commercial payments."
Read on to learn more.
1. Federal Reserve survey: Consumers demanding faster payment options to fit their digital, always-on lives (Federal Reserve)
U.S. consumers are seeking faster payments in more areas of their increasingly on-demand lives, with four out of five saying they are interested in faster options to pay businesses, according to a survey released today by the Federal Reserve Banks. About 70% say having access to enhanced faster payment capabilities from their financial institution(s) is an important satisfaction driver. Read more.
2. Data: Real-Time Payments Usage Rising Among Mid-Market Companies (PYMNTS.com)
Fifteen percent of companies from four industries with annual revenue between $50 million and $1 billion currently use real-time payments to make or receive payments, according to "Real-Time Payments: The Fast Track To The Future Of Corporate Payments," a PYMNTS and The Clearing House collaboration based on a survey of 100 executives. Among the surveyed companies that use real-time payments, 14% of their payments are made and 9% are received using real-time payments. Read more.
3. To Woo Vendors, Try Offering Real-Time Payments (PYMNTS.com)
In the B2B realm, wire payments remain a mainstay, and perhaps the less said about checks, the better. In an age of hyper-competition between firms, especially in the gig economy where platforms promise speed and transparency when interacting with individuals, contractors and small- to medium-sized businesses (SMBs), the transfer of money - with finality - lags. Invoices must be generated, sent, received and paid by buyers - a process that can take time. Automated clearing house (ACH) payments take 12 hours to process and can even take days to settle. Read more.
How is your financial institution responding to shifting consumer needs? Demand is rising for real-time payments among mid-market companies: What is your financial institution doing to meet the needs of this growing market? Speed in payment is becoming increasingly important to small- to medium-sized businesses. What steps is your financial institution to meet the need for growing speed in payments?
Check back soon for our next issue, which will again highlight the industry's most pressing and need-to-know developments. Until then, visit us online at Innovating Payments.
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.