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Yahoo
14 hours ago
- Business
- Yahoo
Real-time payments zoom ahead
This story was originally published on Payments Dive. To receive daily news and insights, subscribe to our free daily Payments Dive newsletter. Dive Brief: Second-quarter transaction volume for the Federal Reserve's young FedNow real-time payments system jumped 63% over the first quarter, to 2.1 million payments, the central bank said Wednesday. Meanwhile, second-quarter volume at the older private rival RTP network, operated by The Clearing House, rose 8% to 107 million payments, compared to the first quarter, according to its release on Thursday. Still, The Clearing House, owned by some of the world's biggest banks, accounts for the lion's share of real-time payments in the U.S., capturing 98% of the second-quarter activity. That private system processed $481 billion in payments during the second quarter, nearly tripling the amount it handled in the first quarter, according to its release. By contrast, the nascent FedNow system processed $245.8 billion in transactions for the second quarter, according to its statistics. Dive Insight: Payments systems worldwide have been moving to embrace real-time networks. The competing FedNow and RTP systems, like others around the globe, have the ability to move transactions in seconds, as opposed to days on less technologically advanced networks. Given that FedNow launched just two years ago in July 2023, it stands to reason that it's experiencing higher growth than the older rival RTP, which began in 2017. But professionals who follow the industry have still wondered out loud about slow progress for FedNow. 'Volume growth is 'middling' for FedNow,' Chicago payments industry consultant Peter Tapling said by email last week in commenting on the second-quarter results. 'From these low volume numbers, we'd like to see them doubling (or more) volume quarter over quarter.' A decade ago, the central bank and financial institutions had brainstormed together about bringing real-time payments to the U.S. Eventually, the banks moved on their own to launch RTP at The Clearing House, followed by the central bank deciding later to start a rival system. The Fed made the FedNow move when it became clear that smaller financial institutions were somewhat reluctant to join the real-time payments system operated by their larger competitors, including JPMorgan Chase, Bank of America, Capital One Financial and Barclays. In any case, there is some evidence that the launch of FedNow has spurred more activity on both systems. So far, FedNow has attracted participation from about 1,400 of the approximately 8,800 banks and credit unions in the U.S., according to the Fed's latest release. It also reported that the value of FedNow's average daily volume more than quintupled to $2.7 billion. While The Clearing House didn't provide an average daily volume value, it reported the average value of a payment passed over RTP surged during the quarter to about $4,000 for June, up from $842 in January. The value of the average payment on the FedNow network was much higher at $115,332 for the quarter. That average payment size for FedNow struck Tapling as high, leading him to conclude that a significant share of the Fed's system is in handling corporate transactions. Both FedNow and RTP have been gradually increasing the limit size for the payments they are willing to handle. Recommended Reading Fiserv exec talks real-time payments and challenges Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27-06-2025
- Business
- Yahoo
Payments conferences yet to come in 2025
This story was originally published on Payments Dive. To receive daily news and insights, subscribe to our free daily Payments Dive newsletter. As we enter the second half of the year, executives in the payments and fintech industries are looking ahead to networking and learning opportunities still to come in the second half of 2025. Industry experts anticipate a handful of topics will rise to the top of agendas at these upcoming events. Among the most pressing subjects will be artificial intelligence, the ongoing digitization of payments and ISO 20022, the standard for a common payments language. With the July deadline for ISO 20022 looming next month for the Fedwire Funds Service and a broader November ISO 20022 cross-border payments deadline also ahead, the importance of that topic is rising. Real-time payments gaining ground via the Federal Reserve's FedNow system, alongside The Clearing House RTP network, are also hot themes so far at this year's events. In addition, fraud has taken center stage, including at the Nacha Smarter Faster Payments in April. Erika Baumann, the director of commercial banking and payments at the consulting firm Datos Insights, said she expects real-time payments, artificial intelligence and use cases for generative AI, to be hot themes at remaining events this year. 'The conversation around AI and generative AI in financial services is shifting from theoretical possibilities to real-world applications,' Money20/20 President Tracey Davies said in an interview last year. That's especially true now that Congress is moving ahead with a possible regulatory framework for stablecoins, a form of cryptocurrency tied to fiat currencies. Digital currencies, buy now, pay later and in-house banking payments will likely be on the docket for conferences throughout 2025, Melissa Rawak, Association for Financial Professionals' managing director of membership, marketing communications and events, predicted last year. Below is a look at the biggest payments and fintech conferences still coming up in 2025. These are some of the gatherings most talked about in the industry. July 30-31 Chicago This will be MWAA's 23rd annual conference, a two-day event with educational and networking opportunities, speakers and an exhibit hall that showcases the latest payments products. Sept. 8-11 San Antonio, Texas MAG's event aims to focus on the latest industry topics as well as provide an outlook on the future of payments. Sept. 9-10 Scottsdale, Arizona Like the other regional acquirers associations, WSAA will hold a multi-day conference with education sessions and networking. Last year's event featured presentations on independent software vendors, commerce trends and major credit cards. Sept. 15-16 Chicago About 800 people are expected to attend MoneyLive in 2025, with 60% at the C-level, director, vice president or head-of level. This year's speakers included executives from Barclays, TD Bank and Old National Bank. Oct. 8-9 Chicago The Federal Reserve Bank of Chicago hosts this annual event. Last year's conference featured discussions related to cybersecurity, instant payments and digital currency, among other topics. October 15 New York 'What is great about the Datos event is that … we have the top 100 banks there with limited vendors,' Baumann said. Key topics typically include embedded banking, treasury onboarding and sustainability. Oct. 26-29 Boston AFP's annual conference will take place just before Halloween next year, with nearly 7,000 professionals expected to attend the event, according to Melissa Rawak, Association for Financial Professionals' managing director of global product strategy and growth. The Payments Hub Keynote will discuss the pros and cons of automated clearing house payments versus checks. Other topics will include AI, ISO 20022, fraud prevention, cross-border payments and stablecoins, Rawak said. Oct. 26-29 Las Vegas Money20/20 is among the largest gatherings of AI and finance leaders. This year's event will feature speakers from IBM, OpenAI, Oracle, NVIDIA and many more. The sessions explore how incumbent players, as well as disruptors and innovators, are using technology to modernize payments. Payments and fintech leaders 'attend because we're the place where they can meet with every key stakeholder in the global money ecosystem,' Davies said. 'We're the place to find partners, investors and customers - all under one roof.' Nov. 12-13 Philadelphia This conference in the past has focused on both fintech and payments, delving into topics like the 'future of bitcoin in payments,' innovations in payments and the role of central bank digital currencies. Speakers are drawn from across the payments, banking and digital asset arenas. (A link to the conference isn't available yet, but there is a link to the eighth annual conference above.) Patrick Cooley and Lynne Marek contributed to this story. Recommended Reading FedNow to launch by mid-2023, Fed official says Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27-06-2025
- Business
- Yahoo
FedNow delivers new risk management tools
This story was originally published on Payments Dive. To receive daily news and insights, subscribe to our free daily Payments Dive newsletter. FedNow raised the transaction limit for real-time payments to $1 million on Tuesday, from $500,000, the Federal Reserve said in a website post. The Fed has also added new security features, enabling financial firms to limit the dollar amount and transaction speed depending on the customer segment. Banks can now customize how much money their long-standing business customers or individual account holders can send instantly through the network, the Fed said. 'These new value-added features offer FedNow participants more options to customize their instant payments profile, adding to the suite of available tools that allow financial institutions to tailor activity according to risk management needs and customer activity,' Mark Gould, chief payments executive for Federal Reserve Financial Services, said in the post. The Federal Reserve stuck with a prior February plan to raise the limit for FedNow's real-time transactions and allow banks to set parameters on different customer segments. The agency made the move to make its instant-payment service more appealing to banks. 'Feedback from the industry has been invaluable, and we intend to remain agile and responsive to new and changing customer needs as instant payments grow and mature,' Gould said in a Fed's statement. Since its launch two years ago, FedNow's growth has continued apace. It has added roughly 1,400 banks and credit unions to its network across the country, according to the update this week, up from about 1,300 earlier this year. The bulk (95%) of financial institutions on the FedNow network are community banks and credit unions, the Fed's Tuesday post said. The central bank launched the network in July 2023, partly to cater to smaller financial institutions that had been less interested in joining the private rival RTP network run by their big bank rivals through The Clearing House. Both systems have had difficulty luring financial institutions to adopt capabilities for sending payments, as well as receiving payments because the former are perceived as more risky. Indeed, fraud prevention remains a significant hurdle in spurring adoption and use of instant payments in the U.S. Of payment processors and bank technology companies surveyed last year about real-time payments by the U.S. Faster Payments Council about 75% predicted U.S. financial institutions will be able to receive real-time payments by 2028, but they expect only about 35% will be able to send instant payments by that year. One reason for the lag cited by the respondents is concerns about fraud threats, the report noted. As the Fed races to sign up more banks and credit unions for its real-time payments network, The Clearing House has also seen an uptick in use as well. The RTP network's payment volume surged 38% in 2024 compared to the year prior. Recommended Reading FedNow draws 1,300 financial firms Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
25-06-2025
- Business
- Business Wire
GiveCard Collaborates with Visa to Modernize Disbursements in the Public Sector
NEW YORK--(BUSINESS WIRE)-- GiveCard, a platform purpose-built to help nonprofits and government agencies disburse and manage funds over prepaid funds, today announced a strategic collaboration with Visa. GiveCard will be issuing virtual and physical prepaid cards to recipients, distributing them directly to recipients through various U.S. government agencies. 'GiveCard has built a simple and intuitive platform that helps eliminate the cost, time and complexity associated with disbursement of funds' - Rick Malcolm, Head of Visa Government Solutions North America. Together, the two organizations are helping the public sector transition into the cashless era with infrastructure that enables secure ledger transfers at scale - through prepaid debit cards, as well as GiveCard-powered real-time bank transfers and automated workflows that reduce administrative overhead. As the federal government accelerates efforts to modernize payments – including a recent executive order to phase out paper checks by September 30, 2025 – agencies are working to deliver digital-first, audit-ready payment systems. The GiveCard–Visa collaboration offers a turnkey solution: a modern infrastructure that fuses GiveCard's advanced disbursement technology with Visa's prepaid debit cards. 'The world is going cashless, and government and nonprofit systems have been working to modernize their payment systems to keep up,' said Lurein Perera, Co-Founder and CEO of GiveCard. 'We built GiveCard to close that gap: offering a platform that empowers public-sector organizations to move money quickly, compliantly, and without requiring a 20-person operations team.' GiveCard's infrastructure includes high-limit virtual and physical prepaid debit cards, ACH/RTP/FedNow bank transfers, and a full-service cardholder support system through a platform and live interpreter network that operates in 25+ languages. It's all backed by no-code dashboards, APIs, and customizable workflows so agencies can automate disbursement logic, like eligibility checks or attendance triggers, without building from scratch or hiring additional staff. 'GiveCard has built a simple and intuitive platform that helps eliminate the cost, time and complexity associated with disbursement of funds,' said Rick Malcolm, Head of Visa Government Solutions North America. 'Their ability to integrate into government disbursement systems to manage complex and high-volume payments has made them an early success in the public sector, and we look forward to what we can accomplish together for our customers and stakeholders in the government sector.' GiveCard is purpose-built for disbursement: its infrastructure was designed to move money into people's hands with minimal friction, especially for unbanked or underbanked individuals. With no SSN or ID required, the system supports programs like housing aid, disaster relief, and research incentives while maintaining full anti-money laundering (AML) and Bank Secrecy Act (BSA) compliance. The new collaboration will enable state and local governments, school districts, and nonprofits to rapidly implement and scale digital disbursement programs with Visa-backed prepaid cards and secure digital rails. About GiveCard GiveCard is revolutionizing how organizations move money to people. Our specialized prepaid debit card platform and disbursement management infrastructure make it simple and efficient to launch, scale, and measure the impact of fund distribution initiatives. From nonprofit organizations and government agencies running cash assistance programs to research institutions and school systems, GiveCard enables instant delivery of funds to individuals—no bank account required. Founded in 2018, GiveCard has facilitated the disbursement of millions of dollars to hundreds of thousands of individuals across the U.S. Learn more at
Forbes
17-06-2025
- Business
- Forbes
Financial Institutions Can Align With Businesses On Faster Payments
Reed Luhtanen is the Executive Director of the U.S. Faster Payments Council, a membership organization focused on advancing faster payments. What is good for the goose is good for the gander, right? What is good for one, is good for all? In some instances, this might be the case, but not when it comes to faster payments and what businesses need to support faster payments adoption. Faster payments adoption by both businesses and financial institutions has been steadily climbing over the past five years. In 2019, the Faster Payments Barometer revealed that less than half of industry organizations had adopted some form of faster payments. Fast forward to 2025, and 80% of respondents to this year's study consider faster payments a 'must have.' Take, for instance, financial institutions. Not only have they adopted faster payments, but they are leveraging multiple channels to do so. In fact, the 2025 Faster Payments Barometer showed that nearly 90% of financial institutions have or plan to implement FedNow; nearly 64% have or plan to implement RTP; and over 55% have or plan to implement Zelle. Additionally, among the financial institutions that have implemented instant payments, 58% implemented both FedNow and RTP. And new developments are forthcoming: More than 90% of planned faster payments implementations will occur in the next two years. Businesses, too, are interested in faster payment solutions—with 66% reporting they are likely to use instant payments if offered by their primary financial institution. However, their adoption of faster payments has not advanced at the same pace. A recent report indicated that only around 40% of large businesses are using RTP, demonstrating that the rate of adoption by businesses remains slower when compared to financial institutions. This differential stems from a disconnect between financial institutions' priorities and businesses' needs. Consider that the 2025 Faster Payments Barometer revealed that financial institutions are most interested in offering faster payments for person-to-person (P2P) payments, bill payment and payroll, while businesses hope to leverage faster payments for e-commerce, point-of-sale transactions and supplier/invoice payments. Similarly, there is a sharp contrast between the challenges experienced by both audiences. Financial institutions grapple with the high implementation costs, with roughly 60% citing this as the top challenge, while only 38% of nonfinancial institutions do. For nonfinancial institutions, the top challenge is a lack of ubiquity and interoperability (60%), while only 36% of financial institutions see it as a challenge. This disconnect also contributes to businesses' dissatisfaction with the progress of faster payments: Less than 30% of businesses feel as though the United States is making satisfactory progress toward a faster payments future. Yet, while discontent may exist, businesses still believe in the value and benefit of faster payments. Sixty-seven percent consider faster payments a must-have. From cost savings and increased cash flow to enhanced customer service and greater efficiencies, the value prop for business adoption is obvious. And as a key facilitator of faster payments, financial institutions can serve as the conduit to deliver the faster payments experience businesses want and need. Financial institutions need to consider ways to better engage their business audience while not losing sight of institutional priorities. For instance, bill pay is a use case important to financial institutions. And request-for-payment (RfP) is the most important enhanced offering cited by nonfinancial institutions. As the key player in connecting billers and customers through banking platforms, financial institutions can focus efforts on enabling RfP for business customers, meeting business needs while enhancing the bill pay offering. Implementing RfP also supports businesses' desire to use faster payments for supplier/invoice payments. Even businesses' desire for interoperability is something financial institutions can work toward supporting (and already are). By adopting both RTP and FedNow, financial institutions play a role in growing the overall faster payments ecosystem. By doing so, they increase the number of end points able to access faster payments, growing the opportunity for interoperability. Additionally, by offering both platforms, financial institutions provide businesses with greater reach to the customers they are seeking to serve, aiding in meeting their desire for a more universal, faster payments experience. When it comes to faster payments, financial institutions and businesses have different priorities and concerns. But those differences do not have to divide the two audiences. By understanding the needs of businesses, financial institutions can realign efforts to meet businesses' needs while remaining steadfast in addressing organizational goals and objectives. So, what is good for the goose might not necessarily be what is good for the gander, but through understanding, both the goose and gander—financial institutions and businesses—can agree upon solutions to advance faster payments in the United States. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. 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