Now, according to a new survey from the Federal Reserve
(PDF), consumers are seeking faster payments in even more areas of their
increasingly on-demand lives.
The survey of over 2,000 consumers found that more than six
in 10 say they plan to use faster payments more in the future. And while
person-to-person (P2P) transactions continue to be a prominent use case for
faster payments, four out of five consumers say they are interested in faster
options to pay businesses.
“From recurring payments to last-minute bill pay, consumers
are looking for faster payment options that give them more control over the
timing of their transactions with businesses. These findings suggest that
providing consumers with safe, efficient instant payment methods for business
transactions needs to be a key industry priority.”
Senior vice president and head of industry relations for the
Federal Reserve System
With instant payments, which are a type of faster payments,
a payee’s account is credited within seconds of payment initiation, enabling
them to have immediate access to funds and allowing payers to know exactly when
their money has reached its destination. This can ease the concern of late fees
and gives consumers the ability to pay bills exactly when they are due.
The demand for faster payments spans age groups and has
intensified in the wake of the COVID-19 pandemic, according to the survey.
These findings align with a survey of businesses published by the Federal
Reserve Banks in the fall of 2021, which showed that nine out of 10 businesses
expect to be able to make and receive faster payments in the next three years.
In response to industry demand for faster payments, the
Federal Reserve is developing the FedNowSM Service (Off-site), a new
infrastructure for instant payments that will operate around the clock, 365
days a year.
“The Federal Reserve’s FedNow Service will allow financial
institutions of all sizes to offer safe and instant payment services for their
customers when it launches in 2023,” said Nick Stanescu, FedNow Service
business executive. “In addition to the growing demand for faster payments to
businesses, the survey shows P2P continues to be one of the strongest use cases
for instant payments, which validates our direction for the FedNow Service.”
Other key findings from the consumer survey included:
Nearly seven out of 10 use mobile payment devices to send or
About 70% say access to enhanced faster payment capabilities
from their current financial institution(s) is an important satisfaction
Nearly 80% are interested in leveraging faster payments to
More than 60% want a real-time view of their account balance
and immediate posting of payments they initiate.
83% are using a fintech payment app or digital wallet at
least occasionally to complete transactions, including 71% of those 55 and
Click here for the