Jon Budd, CEO of Juniper Payments, a PSCU company, said instant payments, over the long term, will see a blossoming of use cases and demand from financial institutions’ corporate and consumer clients.
As it stands now, only about 3% of financial institutions have signed on to the FedNow® Service, although The Clearing House’s RTP® Network has been around for six years.
But as more FIs join, Budd said during the latest installment of the “What’s Next in Payments Instant Payments: What Will Turbocharge Instant Payments Growth in 2024?” series, for instant payments to gain critical mass, “a lot is going to rely on further education to consumers and businesses.”
Consumers have gotten used to apps and other means of sending money that at least give the perception that funds are being sent and received in real time (most visibly with peer-to-peer platforms), he said.