Welcome to the May 2025 issue of the Innovating Payments Executive Summary. This month, a new Federal Reserve study highlights how U.S. businesses leverage instant payments to overcome common payment pain points and enhance customer and employee experiences. Meanwhile, the latest AFP Payments Fraud and Control Survey Report warns that fraud remains a persistent threat in the industry.
Marking a new milestone, Nacha and the U.S. Faster Payments Council celebrated as 161 payments professionals successfully passed the inaugural Accredited Faster Payment Professional (AFPP) exam, underscoring their expertise and dedication to the evolving faster payments landscape.
Additionally, Phixius by Nacha—a secure, peer-to-peer payment information network—has announced a strategic collaboration with Kinexys Liink, the world’s first bank-led peer-to-peer data-sharing network and part of Kinexys by J.P. Morgan. This partnership aims to drive innovation and enhance secure financial data exchange within the industry.
And there’s still time to register for NEACH’s Payments Management Conference on May 19-20 at Foxwoods Resort and Casino. Don’t miss out on this pivotal industry event.
To learn more about these and other headlines, read on.
Top Headlines
The Federal Reserve Financial Services 2024 Business Payments Study
“U.S. businesses are using instant payments to solve common payment pain points and improve customer and employee experiences,” according to the Federal Reserve Financial Services 2024 Business Payments Study,the FedNow® Explorer website reported.
According to the study:
Businesses identify multiple pain points with payments in general:
- Total costs (48%): Costs of payments, including service fees, exceptions, and manual processes.
- Security issues (32%): Weak security is a clear pain point for businesses, 16% of which report experiencing fraud in the past 12 months.
- Speed/timeliness (32%): Businesses need improved payment options to accelerate receipts and optimize cash flow.
Businesses noted that instant payments help to alleviate these and other payment-related challenges. Specifically:
- 92% of businesses are using faster payments today to improve cash flow: Accelerating receipt of funds, more time to send, and more time to realize discounts.
- 43% prioritize a focus on digital payments to enhance customer experience: Accepting payment options customers prefer, end-to-end electronically.
- 34% cite greater payment choice as a key to business success: More choice to fit the best payment to the specific need.
Faster payments enhance liquidity, especially in managing working capital. Implementing automated invoicing and payment tracking systems streamlines financial operations, reduces errors, and improves cash flow management,” observed one medium-sized service business.
To learn more, you can download the study here.
2025 AFP Payments Fraud and Control Survey Report
The Association for Financial Professionals released its 2025 AFP Payments Fraud and Control Survey Report.
Survey highlights:
- Fraud remains a threat: 79% of respondents said their organizations experienced actual or attempted payments fraud, down slightly from 80% in 2024.
- Business email compromise (BEC) continues to be a threat: In 2024, BEC was again the number one avenue for attempted and actual payments fraud, cited by 63% of respondents. The incidence of vendor imposter fraud was also high, at 45%, a sharp increase from 34% in the previous survey.
- Check fraud remains constant: Checks are the payment method most often subjected to payments fraud, with 63% of respondents experiencing attempted or actual fraud via checks in 2024. While that percentage is down slightly from 65% in the previous survey, it is clear that checks remain easy targets for criminals.
You can access the survey findings here.
FedNow
FedNow Service Continues Momentum in Q1 2025
According to a Fed news release, the FedNow Service experienced strong growth in Q1 2025, with transaction volume, value, and participation increases as financial institutions and their customers embraced instant payment capabilities through innovation and new use cases. Today, more than 1,300 financial institutions across all 50 states are live on the service, with small and midsize institutions, including community banks and credit unions, accounting for over 95% of participants.
Over the past three months, the FedNow Service processed more than 1.3 million transactions, marking a 43% increase from the previous quarter. On average, consumers and businesses transferred $540 million per day through the network.
“For us, adopting the FedNow Service early was about getting ahead of the game. We wanted to make instant payments available to our members as quickly as possible because it’s a more efficient and secure way to make transactions,” Cassandra Tucker, director of operations at ABNB Federal Credit Union, said in the release. “For our credit union, instant payments serve as a tool for member retention, acquisition, and support.”
Financial institutions utilize the FedNow Service for a variety of transactions, including off-cycle payroll and earned wage access, digital wallet defunding, real estate escrow payments, auto loan disbursements, online marketplace seller payouts, and more.
The full volume and value data is available on FRBservices.org.
Nacha
Nacha and U.S. Faster Payments Council 161 Accredited Faster Payment Professionals (AFPPs) Pass Inaugural Exam
Nacha and the U.S. Faster Payments Council announced that 161 payments professionals successfully passed the inaugural Accredited Faster Payment Professional (AFPP) exam, marking an important milestone in demonstrating expertise and commitment within the faster payments ecosystem, according to a joint news release.
The AFPP accreditation, developed by Nacha and the U.S. Faster Payments Council with input from the industry, sets a new standard for professionals and promotes secure, efficient, and innovative faster payments. The exam encompasses key U.S. payment rails, including Same Day ACH, FedNow, RTP, and Push-to-Card Debit Networks.
“The AFPP designation exemplifies the dedication of industry professionals committed to leading the evolution of faster payments. Passing this exam is a significant feat, and these individuals have validated their expertise and proven their passion for shaping the future of payments,” Jane Larimer, President and CEO of Nacha, said in the release. “Their hard work paves the way for stronger collaboration and innovation in our industry.”
For more information about the AFPP certification program or how to get involved, visit https://www.nacha.org/afpp.
Phixius Announces Collaboration with Kinexys by J.P. Morgan
According to a Nacha news release, on April 25, Phixius by Nacha, a secure peer-to-peer payment information network, announced a strategic collaboration with Kinexys Liink, the world’s first bank-led peer-to-peer data sharing network and part of Kinexys by J.P. Morgan. This collaboration fosters information exchanges between the two payment information networks, significantly improving account validation coverage for financial institutions, FinTechs, and corporations.
“Phixius’ collaboration with Kinexys Liink offers a unique opportunity to facilitate collaboration across respective networks,” Rob Unger, Managing Director of ACH Network Development at Nacha, said in the release. “Kinexys Liink and Phixius customers can benefit by validation services using data provided by either network, helping to mitigate payment fraud and reduce potential ACH returns.”
You can read the full Nacha release here.
ACH Network Sees Strong Start to 2025
The ACH Network kicked off 2025 with strong momentum, achieving notable growth in both standard and Same Day ACH transactions during the first quarter, according to a Nacha news release. ACH payment volume climbed 4.2% to 8.5 billion, while the total value surged to $22.1 trillion—an increase of $1.4 trillion, or 6.6%, compared to the previous year.
Same Day ACH maintained its rapid expansion, processing 326 million payments worth $897 billion. These figures reflect impressive year-over-year increases of 19.1% in payment volume and 24.8% in transaction value, highlighting the growing demand for faster payment solutions.
“As Same Day ACH nears moving one trillion dollars in a quarter, it is clear that this faster payment method is gaining acceptance across a range of use cases,” Jane Larimer, Nacha President and CEO, said in the release.
You can view the news release here and download the infographic here.
NEACH
NEACH’s Payments Management Conference is fast approaching, taking place May 19-20 at the Foxwoods Resort and Casino. Attendees can expect a variety of insightful sessions tackling today’s most pressing payments challenges. Additionally, keynote speaker Bill Sullivan, Associate Managing Director of Government Relations at NACHA, will explore key policy developments in Washington and their implications for payments regulation and priorities.
NEACH - New England Automated Clearing House Association is a neutral, member-focused advocate. Our role is to give you the intelligence, context, and connections you need to make informed strategic decisions. We bring together industry leaders, policymakers, and innovators so you can evaluate innovation through the lens of your institution’s mission and market strategy. For more information, visit neach.org.
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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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