U.S. businesses and consumers are rapidly adopting digital, faster and instant payment services, according to studies released today by Federal Reserve Financial Services. Digital wallet use saw espec...
CHICAGO: U.S. businesses and consumers are rapidly adopting digital, faster and instant payment services, according to studies released today by Federal Reserve Financial Services. Digital wallet use saw especially strong growth in 2023 — efficiency-focused businesses increased their use by 31% over the prior year, and convenience-minded consumers experienced a 32% increase.
These changes, particularly consumers’ use of digital wallets and online banking, are leading to increases in instant and faster payment use cases such as bill payment, mobile wallet funding and defunding, account-to-account transfers, and immediate payroll for employees.
“The growing demand for faster and instant payment services suggests that tools like the FedNow® Service will continue to play a crucial role in helping financial institutions meet their customers’ needs,” said Mark Gould, chief payments executive for Federal Reserve Financial Services. “The strong growth we’re seeing in the FedNow Service, which has grown to over 700 participants since launching last summer, shows how financial institutions are stepping forward to meet this change in customer expectations.”
Overall, 86% of businesses and 74% of consumers said they used faster or instant payments in 2023, and most (74% of businesses and 79% of consumers) reported looking to their financial institution to provide these services.
“Workers can now get paid immediately, helping them avoid late fees and better meet a variety of obligations,” said Shonda Clay, executive vice president for Federal Reserve Financial Services. “At the same time, employers are seeing the benefit of improved employee satisfaction and retention as a result of same-day pay. This is an example of how investments in enhanced payment infrastructure are helping institutions and their technology partners innovate new services for their consumer and business customers.”
Other key findings from the surveys include:
Full reports of the corporate and consumer surveys can be found here: Business Research Brief (Off-site PDF), Consumer Research Brief (Off-site PDF). The surveys were conducted by Federal Reserve Financial Services, which also markets instant or faster payment services such as the FedNow Service and FedACH® Services.
About Federal Reserve Financial Services
As the U.S. central bank, the Federal Reserve System provides payment services and seeks to foster the stability, integrity and efficiency of the nation’s monetary, financial and payment systems. Federal Reserve Financial Services are a comprehensive suite of payment and information services offered to financial institutions that include the FedNow Service for instant payments, FedACH Services suite for transactions through the ACH network, the Fedwire® Funds Service for electronic funds transfers, the Fedwire Securities Service for processing securities transfers, Check Services for electronic and paper check processing, FedCash® Services for supplying currency and coin, the National Settlement Service for settlement of interbank obligations, and the FedLine® Solutions that allow direct access to these services. Accordingly, the survey, and statements and findings contained in this summary, are not independent academic research. Visit FRBservices.org® for additional information.
Fonte: Business Wire
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