Instant payments bring a wealth of opportunities to financial institutions and customers alike.
According to a survey by the 451 Research Group, over 45% of U.S. consumers state that access to instant payment capabilities is a driver for engaging with a new bank. However, the same survey found that a significant percentage of consumers lack trust in their banks’ fraud capabilities – and there is still significant anxiety around the safety of direct transfers.
In order to leverage the benefits of instant payments banks need to tackle the difficult trade-off between speed and security. Large real-time payment markets such as the U.K. have demonstrated just how fast fraud and scams can spike with the rise of instant payments.
The transition to instant payments in the U.S. has long been in the works. But staying competitive means understanding the changes involved – including the benefits and challenges.
