Real-time payments are the most consequential development in the payments industry in decades. Innovative fintechs and big techs anticipated the demand for instant payments and focused on developing solutions that modernize and expedite consumer and commercial payments.
The Industry-Wide Impact of Real-Time Payments
The successful payments reinvention by fintechs and big techs is disenfranchising banks and credit unions, and those that don’t offer real-time payments can’t compete with the industry innovators. The digital era and the prolonged pandemic environment also have intensified the focus on clean payments that expedite funds availability and improve cash flow.
According to ACI Worldwide, real-time payments in the U.S. are expected to grow at a 42.1% annual rate through 2024. That means the volume of real-time payments will increase from $734 million in 2019 to $4.2 billion by 2024.
And thanks to those payment innovators, providing money in the exact moment of need has evolved from a competitive distinction into a competitive necessity.
Money Movement is Evolving at Unprecedented Rates
Payments are the most common “money moments,” so you need to offer modern payment and money management solutions to successfully attract, grow, and retain your consumer and commercial accounts. Despite the innovations driven by fintechs and big techs, most consumer and businesses currently trust banks and credit unions more than emerging payment providers. It’s critical to capitalize on that trust before it erodes – and it will. Now is the time to offer the modern solutions that will enable your accountholders to rely on your institution to support their evolving payment needs. And if you don’t, an alternative payment provider is in the palm of their hands – literally.
For even more information about the benefits inherent in offering real-time payments, check out Real-Time Payments – Disruption or Opportunity?
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