Welcome to Innovating Payments' Top 3 News Headlines for the week of Nov. 4, 2024. Zelle appears to be abandoning the app and urging its customers to focus exclusively on using the payment platform through banking apps and sites. Also making headlines, FinTechs say that AI is becoming increasingly sophisticated, enabling bad actors to take over a consumer's account in ways that simulate a real person's behavior.
In addition, according to the latest PYMNTS Intelligence report, "How Instant Pay Is Becoming the Standard for Ad Hoc Payments," 92% of senders see instant payments as the future of ad hoc payments. Over a quarter of senders (28%) believe it will take only one to two years for instant payments to become the standard.
Read on to learn more.
1. Zelle Moves Its Business onto Banking Sites, Leaving the App Behind (Payments Journal)
Zelle appears to be winding down transactions on its mobile app, urging its customers to focus exclusively on using the payment platform through banking apps and sites. The strategy makes a great deal of sense given that Zelle is owned by a consortium of seven banks: Bank of America, Capital One, Chase, PNC, Truist, U.S. Bancorp, and Wells Fargo. They operate Zelle under the umbrella of a company called Early Warning Services LLC. (Read more.)
2. AI Increases Fraud Risk, Fintechs Say (Banking Dive)
Artificial intelligence is now sophisticated enough that bad actors can use it, after taking over a consumer's account, in ways that simulate that person's behavior, creating another point of frustration for payments companies battling fraud, fintech professionals said… "The ability to just spin up a model and create 10,000 people that look real has gotten much higher," said Brian Dammeir, head of payments for the fintech Plaid. (Read more.)
3. Need for Speed: How Instant Ad Hoc Payments Future-Proof Enterprise Relationships (PYMNTS)
From vendor pay to gig workers, enterprises are merging into the fast lane for payments…The latest PYMNTS Intelligence in "How Instant Pay Is Becoming the Standard for Ad Hoc Payments," a collaboration with Ingo Payments, found that 92% of senders see instant as the future of ad hoc payments, with more than a quarter of senders (28%) believing it will take one to two years for instant payments to become the standard, with another 41% of senders thinking it will happen in three to five years. (Read more.)
Does your financial institution offer Zelle P2P payments? Why or why not? What is your financial institution doing to address increasingly sophisticated AI fraud? What impact does increasing interest in instant payments for ad hoc payments have on your FI's instant payments strategy?
Check back soon for our next issue, which will highlight the industry's most pressing and important developments. Until then, visit us online at Innovating Payments.
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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.
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