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Data for today’s episode is provided by Mercator Advisory Group’s report – Faster and Real-Time Payments Fraud.
How many billions will be transacted in the U.S. via faster payments in 2020?
- Mercator Advisory Group estimates that the U.S. will transact $905 billion in faster payments in 2020
- The largest segment will be business-to-business faster payments: 44%
- Second largest faster payments segment will be person-to person: 34%
- Business to consumer faster payments is a growing space—up to 21% of annual volume
- Consumer-to-business transactions are an emerging space occupying only 1% of transaction volume in 2019
- Although some industry observers have expressed concern about the Fed’s plan to enter faster payments…
- …the announcement seems to have removed uncertainty from the market and prompted increased interest in faster payments
About Report
Financial institutions are implementing or planning new faster payment solutions from same day to real-time transactions and creating roadmaps for new products with faster payment solutions embedded. Simultaneously, attention is being given to protecting faster transactions and preserving the trust customers have in their banks and credit unions to protect their financial transactions. A new research report from Mercator Advisory Group titled Faster and Real-Time Payments Fraud reviews these trends, challenges, and solution.
“At the same time that financial institutions are wrestling with new fraud types and the rise of tactics like business email compromise, they are rolling out new faster payments solutions that innately allow less time to detect criminal activity. The good news is that the security providers are responding with solutions. The implementation and adaptation of these solutions to individual operating environments needs to be the focus,” comments Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group and author of the report.
This research report has 15 pages and 3 exhibits.
Companies and other organizations mentioned in this report include: ACH Alert, Brighterion, Early Warning, Experian, Faster Payments Service (U.K.), Feedzai, Federal Reserve, FICO, GIACT, LexisNexis, Mastercard, NICE Actimize, NuData Security, Rambus, RiskRecon, The Clearing House, Verafin, and Visa.
Mercator Advisory Group’s most recent Primary Data report, Small Business Mindsets and Banking Habits: Attitudes Matter, based on the company’s annual Small Business PaymentsInsights survey conducted in spring 2019, reveals that 61% of small business are happy with the size of their business, yet 56% have active plans for growth. A majority (65%) also see the value in using social media as a business tool and see the value in cloud computing (62%). Further, 55% report that keeping up with new technology is “critical” to the success of their company.
