U.S. Faster Payments Forecast, 2019–2024: Building the Foundation

2019 saw the launch of creative new products using a faster or real-time payment network, serving specific use cases that are benefiting corporations, small businesses, and consumers through improved data, messaging and faster access to funds. The Federal Reserve’s announcement in August 2019 that it will develop and operate FedNow, a real-time network, alongside the private sector solutions has shaken the industry even as the specifics of FedNow are yet to be finalized.

“FedNow is anticipated to closely mirror the features and functionality of the solution launched in 2017 by The Clearing House. Interoperability between the two solutions is critical to achieving access for all and avoiding a two-tier payments environment. New legislation regarding faster payments has been introduced which may influence FedNow, but while Washington D.C. ponders the U.S. payments infrastructure, early-to-market products are gaining new customers and transactions, comments Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group, and author of the report.

This report has 19 pages and 6 exhibits.

Companies and other organizations mentioned in this report include: Early Warning Systems, Earthport, Federal Reserve, FIS, Finix, Fiserv, Google, Ingo Money, Jack Henry, Mastercard, NACHA, PayFi, PayPal, Square, The Clearing House (TCH), Transfast, and Visa.