The US Faster Payments Council (FPC), a membership organisation for advancing safe, easy-to-use faster payments in the US, has released the 2024 US Instant Payments Adoption Quantitative Study.
This first-of-its-kind survey, conducted between July and August 2024, involved third-party enablers – such as payment processors, gateways, and digital vendors – who collectively serve over 90% of US financial institutions (FIs).
The study offers critical insights into the projected growth of instant payments adoption over the next five years.
Key findings from the study show that 70-80% of FIs are expected to be enabled to receive instant payments by 2028, while 30-40% are projected to be capable of sending instant credits within the same timeframe.
Early adoption drivers include popular use cases such as earned wage access, digital wallet funding, and peer-to-peer (P2P) payments, while mid-term use cases, like B2B payments and online banking bill pay, are expected to further accelerate adoption in the coming years.
“The results of this new study highlight the momentum and optimism within the payments industry,” said FPC Executive Director Reed Luhtanen.
“The widespread adoption of instant payments will not only enhance user experiences but will also foster greater competition, innovation, and inclusion in financial services. The FPC remains committed to addressing the headwinds and enabling faster payment solutions for all.”
Key Benefits and Challenges Identified
The study sheds light on both the benefits and challenges shaping the future of instant payments. Respondents highlighted the immediate benefits of improved cash flow, funds availability, and increased transaction speed.
In addition, instant payments are expected to drive enhanced user experiences and create opportunities for innovation across the industry.
However, the report also emphasises several headwinds that could slow adoption.
These include the need for ubiquitous fraud prevention tools, better error resolution, and more seamless end-user interfaces.
On the other hand, key tailwinds – such as a use case-driven approach, expanded rules and standards, and strong industry collaboration – are seen as critical accelerators for instant payment adoption.
A Promising Future for Instant Payments
The Instant Payments Study paints an optimistic picture of the future.
Financial institutions are increasingly prioritising instant payments, with expectations of widespread adoption by 2028.
The study also underscores the importance of collaboration between financial service providers, third-party enablers, and regulatory bodies to overcome challenges and capitalise on opportunities in the payments ecosystem.
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