How can U.S. banking grow instant payments faster?
FedNow, a year out of the chute, is adding institutions quickly and The Clearing House's Real-Time Payments network continues to build volume. But some say instant payments haven’t yet hit escape velocity. Can banks speed it up? Should they?
Among banks and the rest of the payments fraternity, instant payments stirs a strong mix of emotions, including optimism, skepticism, pessimism, elation, frustration and consternation.
In fact, in multiple interviews The Financial Brand had with payment experts, a long take would be followed by “Sorry — I get really passionate about this issue.”
The passion about payments is rooted in disagreements about the potential in the U.S. for instant payments as a product, the impact of marketing in moving things faster (or not), and the role of financial institutions and payments companies in creating payment products and tools that use instant payments rails.
Frequently, payments people talking about FedNow (and instant payments in general) compare it to putting up a new suburban subdivision. The rails providers, the Fed and The Clearing House, have put in the streets, sewers, water lines and electrical service, but many homes have yet to go up.
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