Categories: Faster Payments

Faster Payments Tracker: Will Faster Payments Take Banks For A Walk On The Wild Side?

When it comes to faster payments, we have decidedly achieved liftoff.

Faster payments solutions are gaining traction as more companies roll out solutions to help companies distribute funds faster between businesses, institutions and consumers. As 2017 kicks off, new developments in payments technology are expected to shake up the industry. The January Faster Payments Tracker™ showcases several new occurrences that could alter the way companies do business.

News from the world of faster payments

From blockchain to Zelle, several companies are adding features that would allow companies to offer faster payment methods to their customers across the globe. Jack Henry & Associates and FIS Global joined Early Warning’s Zelle network to offer faster P2P services to U.S. banks. Several startup companies are investing in blockchain tools to allow businesses to send payments overseas.

As faster payments gain in popularity, regulators are starting to take notice and are developing their own rules and policies on how to respond to faster payments developments. Last month, NACHA hosted a gathering of congressional staffers and regulators to apprise them on faster payments trends. Meanwhile, the Federal Reserve released its own report that outlined the potential usages for distributed ledger technology.

Preparing banks for change

Advancements in payments technology promise to deliver funds to businesses, merchants and consumers at a much quicker pace. While developments in payments technology are promising to shake up business as usual, many banks are not yet ready to embrace them. This is because many banks have longstanding histories of avoiding risk and are highly cautious about turning to new technology solutions.

For the January edition of the Faster Payments Tracker™, PYMNTS spoke with Richard McShirley, CMO of linked2pay, a provider of cloud-based payment solutions, about how to get risk-averse banks to consider taking a risk on new payments solutions.

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About The Tracker

The PYMNTS Faster Payments Tracker™, powered by NACHA, is your go-to resource for staying up to date on a month-by-month basis. The Tracker highlights the contribution of different stakeholders, including institutions and technology coming together to make this happen.

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The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.