Industry experts predict adoption of real-time payments as well as the increased use of FedNow and digital wallets in 2024 as consumer demand for instant payments continues to grow.
“We are now seeing a major shift in this direction for real-time payments and can expect to see this continue into 2024,” Zur Yahalom, senior vice president and head of financial services at digital transformation fintech Amdocs, told Bank Automation News.
Following are BAN articles regarding payments trends expected to continue this year:
Future of finance: The digital wallet
Digital wallet transaction volume is expected to reach $16 trillion by 2028, according to research firm Juniper Research’s “Digital Wallets: Platform Analysis, Key Trends and Market Forecasts 2023-2028″ report.
As adoption grows, fintechs and traditional financial institutions are innovating within the digital wallet space.
“In today’s increasingly digital world, shoppers are expecting that everything they need is either integrated into their phone or their laptop for both speed and convenience, and digital wallet comes into play with that,” Margaret Ryan, vice president of digital payments and product user operations at American Express, told BAN.
More than 200 FIs join RTP network in 2023
The Clearing House added more than 200 institutions to its real-time payments network in 2023, and it plans to double down on its scaling efforts in 2024, Chief Client Officer Elena Whisler told BAN.
Institutions live on RTP include Citibank, Fifth Third, Navy Federal Credit Union, U.S. Bank and Wells Fargo, according to The Clearing House’s website.
Fed looks to fintechs to drive FedNow adoption
The Federal Reserve is looking to its 20 certified service providers, including ACI Worldwide, CSI, Finastra and FIS, to drive adoption of FedNow, Mark Gould, chief payments officer for Federal Reserve Financial Services, said at Sibos 2023 in October.
FedNow had roughly 300 institutions — including Citizens Bank, JPMorgan Chase and Wells Fargo — live on the rail as of Dec. 13, according to the Federal Reserve’s website.
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