The financial landscape is poised for a significant transformation in 2018 as the volume of faster payments is set to reach unprecedented levels, surpassing $650 billion. This surge in adoption highlights the growing demand for instantaneous transactions among financial institutions, businesses, and consumers alike. In parallel, Same Day ACH has achieved remarkable milestones with 75 million transactions amounting to $87 billion, although this still represents less than 1% of the total ACH volume.
The widespread adoption of payment platforms such as Zelle, which currently operates across 29 banks with 140 more set to join, is further accelerating the shift. Notably, 70% of Zelle transactions occur within the same financial institution, underscoring its convenience and reliability.
However, the rapid implementation of faster payment systems comes with its challenges. For instance, the UK experienced a 100% increase in bank fraud following the launch of Faster Payments. This serves as a crucial reminder of the need for robust security measures alongside technological advancements.
- Faster Payments will surpass $650 billion in 2018
- Same Day ACH reached 75 million transactions for $87 billion but, $87 billion is less than 1% of total ACH volume
- 70% of Zelle transactions occur within the same financial institution but, 140 more banks are adding Zelle (currently running on 29 banks)
- When the UK launched Faster Payments, bank fraud increased by 100% increase in bank fraud
Data for this episode of Truth In Data provided by Mercator Advisory Group’s report Faster Payments Forecast, 2017-2021, Update: The consequences of Faster Payments
