Faster payments, which enable the quick settlement of transactions, are attracting greater interest from US financial institutions, businesses, and consumers, creating new challenges and opportunities for payments incumbents.

Legacy players in the $774 billion remittance payments market risk being relegated by digital challengers—unless they improve their solutions.

Payment provider innovation across remittances, B2B payments, and retail card and noncard payments is setting a long-term growth runway. In the short term, providers must navigate a host of obstacles to enable more crypto users to become crypto payers—and so far they’re succeeding.

Network Intelligence Technology lets FIs share fraud data with other industry players to mitigate real-time payment fraud.

Payments Ecosystem: This year will reveal how providers must adapt to lasting pandemic-driven digitization across payments channels, ranging from in-store retail to B2B ecommerce.

Related content: Check out “The Rise of Real-Time Payments” report to learn more about FedNow and how it stacks up against other faster payment systems.

Cash made up 18% of point-of-sale transactions globally in 2021, according to FIS’ Global Payments Report. And FIS expects global cash transactions to decline to 10% by 2025. Many banks have moved away from using ATMs and instead direct customers toward mobile banking, credit and debit cards, and real-time payments. Banks are also cutting costs where they can to enhance their tech budgets.

The news: The Clearing House (TCH) is trying to make using its Real-Time Payments (RTP) Network easier and more secure. TCH and Fiserv partnered to make the RTP Network more accessible for consumers and businesses, per a press release. Fiserv’s clients can access the RTP network through Fiserv’s NOW Gateway, an access point for financial institutions (FIs) to support RTP options.

Another BaaS component covers payments, including those specifically targeting crypto firms. These include push-to-card, account-to-account money transfers, and real-time payments. Its direct banking arm includes offerings like deposits, small business lending, and capital markets support for fintechs. The bank also has two significant income sources outside of BaaS:.

The service lets corporate clients send payment requests directly to the bank’s retail customers—helping it strengthen client relationships and opening the way for other transaction use cases, like B2B payments.

B2B, C2C, and B2C payments all stand to gain from shorter settlement times, which offer greater financial flexibility and control. Faster payments’ speed also provides valuable transparency for firms, which benefit from the certainty of immediate payment.

Integrate a Variety of Payment Methods. Software providers should leverage network partnerships to meet growing demand for ACH payments and virtual cards. They can also integrate AP/AR solutions with real-time payment (RTP) networks and digital wallets like Venmo, Zelle, and PayPal, said Jed Rice, CEO of Aliaswire.

Digitization is disrupting the B2B payments space, the largest addressable payments market. As the industry evolves, there will be a substantial opportunity for payment providers to meet changing preferences and capture market share.

Related content: Check out “The Rise of Real-Time Payments” report to learn more about FedNow and how it compares with other faster payment systems.

Top 10 countries for real-time payments

Ally could continue its overdraft-alternatives push by investing in real-time payments (RTP) technology, which can improve people’s short-term cash flows:. A November 2021 Javelin study found that 54% of consumer respondents felt RTP could help with late-fee avoidance.