Welcome to NEACH's Innovating Payments' Top 3 News Headlines for the week of July 23. The Federal Reserve announced that its new system for instant payments, the FedNow® Service, is now live. In other news, The Clearing House's RTP® network, which has been providing instant payments to millions of consumers and businesses for over five years, surpassed the 500 million payment milestone on Saturday, July 22. According to the study, Payments and Credentials Vaults: The Trust Factor, a PYMNTS and FIS collaboration, 60 percent of consumers say they trust PayPal more than their bank with stored payment credentials.
Read on to learn more.
1. The Federal Reserve Announces That Its New System for Instant Payments, the FedNow® Service, is Now Live (The Federal Reserve Board)
The Federal Reserve on Thursday announced that its new system for instant payments, the FedNow® Service, is now live. Banks and credit unions of all sizes can sign up and use this tool to instantly transfer money for their customers, any time of the day, on any day of the year. "The Federal Reserve built the FedNow Service to help make everyday payments over the coming years faster and more convenient," said Federal Reserve Chair Jerome H. Powell. (Read more.)
2. RTP® Network Surpasses Half a Billion Instant Payments (The Clearing House)
The Clearing House's RTP® network, which has been providing instant payments to millions of consumers and businesses for more than five years, surpassed the 500 million payment milestone on Saturday, July 22. The RTP network, which is available to all insured banks and credit unions in the United States, is seeing steadily increasing volume. Transactions on the RTP network in Q2 2023 totaled 58 million for $29 billion, up from 41 million transactions for $18 billion in Q2 2022. (Read more.)
3. 60% of Consumers Say They Trust PayPal More Than Their Bank with Stored Payment Credentials (PYMNTS)
When it comes to credentials vaults that aggregate payment information and store credentials securely, and updating payment information shared with merchants when consumers change payment methods or account numbers, whom consumers trust is a changeable matter. We analyzed this in the study "Payments and Credentials Vaults: The Trust Factor," a PYMNTS and FIS collaboration, and found that interest in using credential vaults is rising across the digital commerce spectrum as younger digital-first demographics trust these services more. (Read more.)
What plans does your financial institution have for FedNow? How will RTP play into your real-time payments strategy? What steps can your financial institution take to increase customer trust and loyalty?
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, 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.