Welcome to Innovating Payments Top 3 News Headlines for the Week of April 7, 2024. In this issue, a legal dust-up between PayPal and the Consumer Financial Protection Bureau (CFPB) over digital wallets has notched a win in PayPal's favor. And in the six months following its groundbreaking launch in 2023, FedNow® has emerged as a transformative force in real-time payments. Also in the news, The Clearing House processed 76.4 million transactions in Q1 2024, valued at around $42 billion, and has revealed a range of other newly set records.
Read on to learn more.
1. PayPal's Court Win Spotlights Continuing Evolution of Digital Wallets (PYMNTS)
The legal dust-up between PayPal and the Consumer Financial Protection Bureau (CFPB) over digital wallets has notched a win in PayPal's favor. As reported this week, U.S. District Judge Richard J. Leon ruled that the CFPB "had no rational justification" for placing digital wallets under the rule's "short form" fee disclosure requirements. Per the ruling, and as PYMNTS detailed, unlike other products, "digital wallets are not primarily used to access funds or to function as a substitute checking account," Leon's opinion said. (Read more.)
2. How FedNow is Shaping Payments Since its Groundbreaking Launch (Finextra)
In the six months following its groundbreaking launch in 2023, FedNow has emerged as a transformative force in real-time payments, marking a significant departure from the traditional Automated Clearing House (ACH) system. This shift signifies a pivotal moment in banking innovation, offering instantaneous transaction processing that aligns with the modern financial transaction demands. (Read more.)
3. The Clearing House RTP Network Boasts Record 76 Million Transactions to Kick Start 2024 (The FinTech Times)
The Clearing House, the US-based payments network provider, processed a record 76.4 million transactions in Q1 2024, valued at around $42 billion, and has revealed a range of other newly set records. The Clearing House also revealed that March became a record month for its real-time payments (RTP) network, boasting over 26 million transactions across the month. 1 March 2024 also became the single day with the most transactions at over 1.25 million. (Read more.)
What forward-reaching implications does PayPal's court win against the CFPB have for financial institutions? How do you see FedNow shaping payments in the months ahead? What does the surge in RTP payments mean for financial institutions and their customers?
Check back soon for our next issue, which will highlight 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.