April 17, 2023 – The U.S. Faster Payments Council (FPC), in collaboration with Glenbrook Partners and sponsored by Volante Technologies, today released results from the 2023 Faster Payments Barometer. The latest survey of payments system stakeholders was conducted to gauge progress and perceptions around faster payments, trends, use cases, and challenges in the United States.
The 2023 Faster Payments Barometer survey was broadly circulated to the industry at large and received hundreds of responses from a wide range of payments stakeholder segments including financial institutions, core processors, payment network operators, business end users, acquirers, fintechs, and more. The survey was conducted from February 14 to March 22, 2023.
This fourth installment of the Faster Payments Barometer illustrates that survey respondents are keen on faster payments and implementation is gaining momentum. In fact, 44% are implementing FedNow℠; 62% have implemented or are in the process of implementing RTP®; 77% of have implemented or in the process with Zelle®; and 85% have implemented or in the process with Same Day ACH. Additionally, 44% plan to implement FedNow in the next 1-2 years and 27% plan to implement RTP in the same timeframe.
“Our latest edition of the Barometer provides valuable insights into the current adoption trends and practices in faster payments as well as the challenges some organizations face today,” said FPC Executive Director Reed Luhtanen. “Finding potential solutions for the most pressing faster payments issues will support increased adoption and help advance the industry forward. The FPC and its Members will continue to tackle these issues through collaboration and dialogue that will provide a roadmap for the future.”
The 2023 Barometer results show that organizations are using faster payments to support a variety of transactions to meet customer demands. Person-to-person (P2P) payments (49%) emerged as the top use case for faster payments this year, followed by dispursements (46%), and bill pay (44%). Despite this progress, familiar challenges remain with survey respondents citing their top three obstacles as lack of ubiquity/interoperability (57%); high upfront costs/complexity (47%); and lack of common rules/standards (30%).
"The Barometer shows that interest in faster payments remains high,” said Elizabeth McQuerry, Partner at Glenbrook Partners. “The FedNow launch in the summer will propel the overall industry forward. Even so, the persistent challenges that we see, including the lack of ubiquity and interoperability, suggest that there are real limits that need to be addressed for the momentum to continue."
Interoperability remains top of mind for organizations with 92% of survey respondents stating they believe it is important to achieve interoperability across all compatible systems. For organizations planning to implement RTP and FedNow, nearly half (47%) plan to connect to both via a third-party service provider and a third (32%) plan to directly connect to each network.
“The 2023 Faster Payments Barometer shows that interest in faster payments is rising rapidly. With FedNow soon to join The Clearing House RTP as a pathway to instant 24x7 account to account transfers, financial institutions are clearly prioritizing interoperability in their payments modernization journeys,” said Deepak Gupta, SVP, Global Head of Payments-as-a- Service at Volante. “It is not surprising that the #1 preferred approach to connectivity, according to the Barometer, is via a service provider that can quickly connect institutions to multiple networks. The right universal connectivity approach, coupled with the ability to bring faster-payment customers experiences to market at pace, will help early adopters differentiate from their competition.”
For more information on the FPC, its current work efforts or to join, visit FasterPaymentsCouncil.org.
Contact:
Elizabeth Grice
U.S. Faster Payments Council
720-737-7368
egrice@fasterpaymentscouncil.org
About the U.S. Faster Payments Council (FPC)
The FPC is an industry-led membership organization whose vision is a world-class payment system where Americans can safely and securely pay anyone, anywhere, at any time and with near-immediate funds availability. By design, the FPC encourages a diverse range of perspectives and is open to all stakeholders in the U.S. payment system. Guided by principles of fairness, inclusiveness, flexibility and transparency, the FPC uses collaborative, problem-solving approaches to resolve the issues that are inhibiting broad faster payments adoption in this country. For more information, please visit FasterPaymentsCouncil.org.
About Glenbrook Partners
Glenbrook is a payments consulting, education, and research firm that brings to our financial services and financial technology clients the unique combination of specialized skills in payments, many years of hands-on experience in the field, and a wide network of professional relationships. The firm helps clients with strategy definition, product development, and the application of technology to solve leading edge problems in the financial services industry. For more information, visit Glenbrook.com.
About Volante Technologies
Volante Technologies is the leading global provider of cloud payments and financial messaging solutions to accelerate digital transformation. We serve as a trusted partner to over 150 banks, financial institutions, market infrastructures, clearing houses, and corporate treasuries in 35 countries. Our solutions and services process millions of transactions and trillions in value every day, powering four of the top five corporate banks, 40 percent of all U.S. commercial bank deposits, and 70 percent of worldwide card traffic. As a result, our customers can stay ahead of emerging trends, become more competitive, deliver superior client experiences, and grow their businesses through rapid innovation. To learn more, visit www.volantetech.com. Follow us at linkedin.com/company/volante-technologies and twitter.com/volantetech.