Water Cooler Talk

Banks are still warming up to instant payments

Despite their value, many banks are hesitant to adopt the send side of FedNow transactions. They need reassurance that the benefits outweigh the risks.

Jenn Day
Mar 21, 2024

Read the original ABA Risk and Compliance article here.

Here is a brief summary of the article:

  • FedNow has over 300 participating banks, but there are still nearly 10,000 banks and credit unions.
  • Most participants opt to receive instant payments, with common use cases being earned wage access, loan funding, and insurance payouts.
  • Banks hesitate due to ATO fraud and payment cannibalization.
  • Instant B2B payments solve a real problem for businesses and have differentiators that could mitigate banks’ concerns about FedNow.
Water Cooler Talk

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