Welcome to Innovating Payments Top 3 News Headlines for the Week of June 9.
This week, Cross River Bank, a technology infrastructure provider specializing in embedded finance solutions, announced the launch of Request for Payment (RfP) across the Real-Time Payments (RTP®) network, marking a significant step in the evolution of real-time payments.
Meanwhile, the payments sector continues to drive growth within the FinTech industry. Of the $378 billion in global FinTech revenues in 2024, an impressive $126 billion came from payments FinTechs, highlighting the increasing demand for digital payment solutions.
Looking ahead, a significant shift in federal payment processes is on the horizon. Beginning Sept. 30, all federal agencies must transition from paper-based payments to digital disbursements, including real-time payments, direct deposit, prepaid cards, and digital wallets.
Read on to learn more.
1. Cross River Launches Request for Payment (RfP) to Power Smarter, Real-Time Money Movement (businesswire)
Cross River Bank ("Cross River"), a technology infrastructure provider that offers embedded finance solutions, announced the launch of Request for Payment (RfP), a transformative addition to its growing suite of instant payment capabilities. The capability will streamline inbound money movement and enhance funding agility across the Real-Time Payments (RTP)® network. Plaid will be the first to implement the feature, unlocking instant purchases through its bank payments platform, Plaid Transfer. A leader in instant payments and an early adopter of the RTP® network, Cross River moves over $1 billion monthly in real-time disbursements across RTP® and FedNow combined. (Read more.)
2. Payments Firms Account for Bulk of Fintech Revenue (Banking Dive)
Fewer than 100 of the approximately 37,000 fintech companies globally account for roughly 60% of industry revenue – and payments firms are the "indisputable winner" of the realm to date, accounting for more than half of that success. Of the $378 billion in global fintech revenues in 2024, $126 billion came from payments fintechs, some of which have seen growth from digital wallets (like PayPal and ApplePay) or vertical software-as-a-service (like Stripe, Toast and Square), according to a report released Monday by QED Investors and Boston Consulting Group. (Read more.)
3. Public-Sector Payments Prepare for $175B Shift to Digital (PYMNTS)
A shift in public-sector disbursements is underway. Beginning Sept. 30, all federal agencies must replace paper-based payments with digital disbursements, including real-time payments, direct deposit, prepaid cards and digital wallets. The move stems from a March executive order, "Modernizing Payments to and From America's Bank Accounts," and marks an evolution in how the United States government delivers money. At stake is more than convenience. The federal government processed $175 billion in paper checks in 2024, at a cost of nearly $700 million in system support alone. Fraud concerns are another key driver. (Read more.)
Where is your financial institution in its decisioning process regarding the adoption of real-time payments, particularly in offering RfP? How can financial institutions gain a competitive edge over FinTechs providing payment services? What downstream implications does the transition from paper-based payments to digital disbursements have on financial institutions?
Check back soon for our next issue, which will highlight the industry's most pressing and essential developments. In the meantime, visit us online at Innovating Payments.
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AUTHOR: Joe Casali, AAP, AFPP, 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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