Real-time payments have existed in the United States since 2017 in Zelle’s peer-to-peer money movement, but the pending launch of the Federal Reserve’s FedNow service in 2023 is poised to transform the payments landscape and bring about a large-scale adoption of the method.

Hosting real-time payments at the point of sale is a particularly attractive prospect for merchants and consumers alike. For merchants, it could be a less expensive, less cumbersome way of receiving funds for their goods and services. For consumers, real-time payments set up as a simple, secure way of entering transactions. In Europe, where such payments have existed for years, there are lessons on how the technology can be rolled out efficiently here.

Key questions discussed in this report:

• How do real-time payments work?
• How are real-time payments poised to transform the payments landscape in the United States?
• What are the implications for merchants, issuers, and consumers?

Companies mentioned:

ACI Worldwide, Bank of America, Capital One, Chase, European Central Bank, FedNow, Fiserv, Global Payments, Mastercard, PNC, The Clearing House, Truist, U.S. Bancorp, Visa, Wells Fargo, Zelle