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As AI, ChatGPT, and the increased adoption of instant payments become more prevalent in our day-to-day lives, the impact of truly connected payments is upending the traditional consumer experience. The implications for our industry are far-reaching – your merchants can receive funds instantly to help manage their business operations, review data analytics to create personalized marketing campaigns, and receive customer payments faster than ever.
According to Grand View Research estimates, the global real-time payments market value was USD $17.57 billion in 2022 and will grow at a compound annual growth rate (CAGR) of 35.5% from 2023 to 2030. We’ve seen the rapid adoption of real-time payments with The Clearing House’s (THC) Real-time Payments (RTP®) network. THC estimates its RTP network reaches 62% of all demand deposit accounts in the U.S. and 85% of insured depository institutions have technical access to the network.
July’s launch of the highly anticipated FedNOWSM service is sure to accelerate this growth. The initial FedNOW offering includes account-to-account and consumer-to-business bill pay use cases and provides payment functionality that benefits both the merchant and consumer. With Request for Payment (RfP) functionality, businesses can attract and retain customers with convenient payment options while reducing time to payment and operational costs.
Real-time payments combined with embedded finance and banking-as-a-service (BaaS) is advantageous for both businesses and consumers. Businesses gain an additional revenue stream with products like same-day funding and Buy Now Pay Later (BNPL) while adhering to stringent, and constantly evolving, data security requirements that Financial Institutions apply to their banking solutions. ISVs, in particular, stand to maximize their profitability, increase valuation, and differentiate themselves from their competition.
Arguably, this convergence of technology and function will evolve into the first ‘super app’ for the North American market. Popular in other markets, specifically in China with WeChat’s market dominance, we’ve yet to see a clear leader as Amazon, Block, and Twitter all make inroads toward not just an integrated payments solution, but a daily lifestyle solution with in-app payments. The financial services industry is laying the groundwork today to make this not just a concept, but a reality.
Software companies and ISOs are taking note and for good reason. As we see the rise of instant funding and payment solutions, ‘everything-as-a-service’ and embedded finance capabilities, creating the framework for your own business is critical to competing in the future. Selecting the right payments partner empowers that success. Are you ready?
An uncertain economic climate and recent challenges in the financial services sector have many merchants and consumers taking a closer look at who they do business with to evaluate their partnerships and optimize their business strategy. Backed by the strength and stability of U.S. Bank, our innovative payments solutions – including some of the fastest funding in the industry, support of the new PazeSM digital wallet, and strategic partnerships to enable real-time payments – mean staying on the forefront of the payments evolution.
Learn why more than 350 ISOs, 1,700 Financial Institutions and 1,000 integrated partners trust us with their business. If you’re looking to maximize your revenue potential, accelerate your speed to market, and scale your business for sustainable growth, we’re here to help. Growth starts here. Call us at: 800.725.1243.