Welcome to Innovating Payments' Top 3 News Headlines for the Week of Sept. 9. In this issue, a study from U.S. Bank revealed that 68% of businesses plan to adopt instant payments via RTP® or FedNow® within the next two years. Also in the news, the Consumer Financial Protection Bureau received a barrage of public comments last week regarding its earned wage access rule proposal ahead of a Friday deadline for that feedback. Finally, Forbes suggests that open banking might be the best formula to take on card payments.
Read on to learn more.
1. 68% of Businesses Plan to Add Instant Payments Within 2 Years (PYMNTS.com)
Businesses and consumers support instant payments, driven by a desire for faster, more efficient transactions. A study from U.S. Bank showed that more than 40% of companies with revenues exceeding $100 million are already using the RTP network. Looking forward, 68% of businesses plan to adopt instant payments via RTP or FedNow within the next two years…These figures highlight a recognition of instant payments' potential to enhance liquidity management and boost customer and vendor engagement. (Read more.)
2. CFPB Slammed with EWA Commentary (Payments Dive)
The Consumer Financial Protection Bureau was hit with a barrage of public comments last week regarding its earned wage access rule proposal ahead of a Friday deadline for that feedback. Much of the commentary fell along the same battle lines that have been drawn for months, since before the federal agency issued its interpretive rule proposal in July labeling earned wage access payments as loans. Many companies in the industry have long argued that their services don't constitute lending and therefore lending laws shouldn't apply. (Read more.)
3. The Dawn of Open Banking Payments: The Power of Choice (Forbes)
Open banking payments, commonly referred to as pay by bank, might be the best formula to take on card payments. While it's slowly gaining traction in the U.S., it certainly hasn't reached ubiquity like credit and debit cards have. Even so, credit cards weren't always king of the wallet. I recently saw a YouTube video of a 1993 news story where the reporter asked patrons in a Burger King restaurant how they felt about the fast food giant introducing credit cards as a new payment type in their restaurants. (Read more.)
How does the reality that 68% of businesses plan to add instant payments in the next two years affect your financial institution's plan for adopting instant payments? What are your thoughts about CFPB labeling earned wage access payments as loans in its interpretive rule proposal? Do you agree that open banking might be the best formula to take on card payments?
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.
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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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