Faster payments are rapidly becoming a cornerstone of the modern payments ecosystem as consumers and businesses increasingly expect transactions to move in real time. Driven by the growth of mobile commerce, digital banking, and on-demand services, financial institutions are accelerating efforts to modernize payment infrastructure and deliver immediate funds availability. Research from Mercator Advisory Group highlights 2019 as a pivotal year for real-time transactions in the United States, with strong growth in Same-Day ACH, expanding adoption of instant payment networks, and rising use cases across peer-to-peer, business-to-consumer, and consumer-to-business activity.
The payments landscape continues to evolve quickly. Consumers increasingly rely on mobile devices to make purchases and expect products and services to arrive without delay. In response, businesses are searching for ways to improve transaction speed and efficiency. One major solution is real-time payment technology. By using modern digital infrastructure, companies can send and receive funds almost instantly. This allows consumers to receive goods and services more quickly while helping businesses reduce delays and improve cash flow. In many cases, these modern payment solutions can also lower transaction costs.
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Data for today’s episode is provided by Mercator Advisory Group’s report – Business-to-Business Faster Payments: Market Review and Forecast 2018–2023
2019 will be remembered as a defining year in the evolution of US payment modernization:
- Same-Day ACH achieved Q1 and Q2 growth rates exceeding 100% over the previous year
- 25 additional banks joined The Clearing House’s Real-Time Payments platform
- More than 50% of US bank accounts are now connected to the RTP network
- Peer-to-peer instant transfers became increasingly common as Zelle continued reporting double-digit growth
- Business-to-consumer transactions expanded in insurance payouts, rebates, refunds, and expense reimbursements
- Consumer-to-business activity gained momentum through emerging services such as Mastercard’s Bill Pay Exchange and The Clearing House’s Request for Pay platform
About this Viewpoint
The pace of adoption continues to accelerate as financial institutions move toward widespread real-time transaction capabilities. Banks and credit unions of all sizes should already be delivering, testing, or planning to implement at least one modern payment solution as demand from businesses and consumers continues to grow.
