For years, the payments industry has fallen behind other markets when it comes to making progress in implementing new processing options. New research shows the same is still true today. While real-time payments are finally gaining momentum in the U.S., they still lag behind.
Data released by Juniper Research just last month revealed that the total value of so-called instant payments (transactions completed within 10 seconds) will reach $18 trillion by 2025. The U.S. share of that market, however, will total just 8%, or $1.4 trillion. This new research will likely put more pressure on U.S. processors to “get in the game” and work to catch up with advances made overseas.
Thus far, the primary movers behind real-time payments in the U.S. market are The Clearing House Payments Co. LLC. Based in New Your City and owned by the nation’s biggest banks – the Federal Reserve – TCH’s Real Time Payment network has been operational since 2017.
Recent projections by the Fed for its FedNow service are expected to finally give real-time payments the push it needs. The new service is anticipated to come online in 2023, or at the latest 2024. Since the Fed is responsible for linking virtually every financial institution in the country, this new service is expected to make big, positive changes in the right direction.
“With the proposed FedNow service from the … Federal Reserve not coming into service until 2023/24, the U.S. is rapidly falling behind in instant payments. Payments vendors must concentrate on creating innovative digital payments products to bridge this gap or be faced with an outdated system,” says Nick Maynard, a Juniper analyst and the report’s author.
In recent months, TCH has made some progress, saying it can now connect to core processors; this could potentially bring online nearly 70% of all U.S. deposit accounts. Even with this progress, Juniper says coverage has been “patchy” at best so far. Meanwhile, institutions in European countries will control 30% of all real-time volume by 2025, according to Juniper.
Where to Find the Best Merchant Services
As things grow more and more competitive, many merchants are searching for ways to offer their customers even more payment processing options, like real-time-payments. Sometimes, finding a provider can be a challenge, however. Some merchants are given a high risk label, making it difficult to secure such services.
If you need help getting started, check out the many reviews Best Payment Providers has to offer. Find the latest news and browse the best merchant providers on the market, like cutpay merchant services. Get the merchant services you need quickly and easily to stay competitive and offer your customers the most convenient options.
Author Bio: Payment industry guru Taylor Cole is a passionate payments expert who understands the complex world of cutpay merchant services. He also writes non-fiction, on subjects ranging from personal finance to stocks to cryptopay. He enjoys eating pie with ice-cream on his backyard porch, as should all right-thinking people.
