U.S. Real-time Payments: Full Speed Ahead After Year 1 of FedNow
- Date:August 19, 2024
- Author(s):
- Elisa Tavilla
- Report Details: 9 pages, 6 graphics
- Research Topic(s):
- Debit
- PAID CONTENT
Overview
The Federal Reserve’s highly anticipated instant payment system, FedNow, celebrated its first anniversary on July 20, 2024. Since its launch, FedNow has not only transformed but also accelerated the growth of faster and real-time payments in the United States. The transaction volume across other faster payment networks, such as RTP and Same Day ACH, has soared to record-breaking heights over the past year, a testament to the industry's rapid evolution. U.S. financial institutions of all sizes are now prioritizing real-time payments, marking a significant shift in the industry landscape.
Today, consumers and businesses are not just using but also increasingly expecting faster and real-time payment options. According to recent Federal Reserve Financial Services surveys, a staggering 74% of consumers and an overwhelming 86% of companies indicated the use of faster or instant payments in 2023. This growing trend is further underscored by the fact that 79% of consumers and 74% of businesses reported looking to their financial institutions to provide these services. More than half (57%) of consumers now expect to use faster payment options more extensively, highlighting the urgent need for the industry to keep pace with these evolving demands.
This impact note looks at the progress and impact FedNow has made on U.S. real-time payments over the past year, mainly growing adoption by financial institutions, businesses, and consumers, as well as prominent use cases and some key challenges.
Learn More About This Report & Javelin
Related content
Three Steps to Improve the Bill Pay Function
Biller direct payments are preferred by consumers over payments initiated through bank bill pay platforms. Closing the gap and engaging more customers will require financial instit...
Cultivating Financial Savvy and Customer Loyalty: Debit Products for Kids and Teens
Debit products aimed at kids and teenagers are highly useful financial services: They allow parents to help their kids build strong financial habits and offer a pathway to deeper r...
Instant Card-Based Payments: Meeting Customer Needs Immediately and Everywhere
Consumers and businesses increasingly expect faster and real-time payment options. They prefer to use convenient, flexible, dependable, and secure payment methods that are availabl...
Make informed decisions in a digital financial world