Consumers and businesses want to move payments faster. Three recent studies show growth in the use of the various flavors of faster payments in the United States.
Instant payments services have reached an inflection point among financial services providers, with more than 60% using or setting up the RTP service and more than 40% setting up FedNow. Zell is approaching 80%, while same-day ACH use tops 85% of providers, according to the 2023 Faster Payments Barometer.
Industry Growth in Faster Payments Use
Businesses report that increasing demand for digital and online delivery of goods and services has jump-started the use of faster payments, according to the latest Federal Reserve Payments Insight Brief. More than 83% of businesses use some form of faster payment, the survey shows. At the same time, three-quarters of gig workers want to be paid essentially on demand, while some 60% of businesses report that they would use end-of-shift payroll services “often” or “frequently” if the service was available.
Top Motivations for Using Faster Payments
Meanwhile, a Paysafe survey shows that more consumers are turning to digital wallets over traditional debit and credit cards. According to “Lost in Transaction: Consumer Payment Trends 2023,” while physical debit cards and credit cards remain the most popular payment methods overall, mobile and digital wallets have significantly increased.
The Paysafe survey shows that 52% of respondents feel at ease leaving their homes without a physical wallet. Instead, they use mobile wallets such as Apple Pay, Google Pay, or other smartphone apps to make everyday purchases. The survey indicates that 40% of respondents now use digital wallets more frequently for online payments compared to a year ago.
Consumer Sentiment on Digital and Mobile Wallet Use
