Bank-to-bank Payments Continue to Grow
For the better part of a decade, a macro trend in the payments industry has been the growth of account-to-account bank transactions. Driven by cost savings opportunities, a growing number of organizations – both consumer-facing and B2B – are encouraging their customers to pay by SEPA, ACH, and direct debit.
As real-time payments continue to become more mainstream globally, and bank payments become easier to use for both merchants and consumers, we anticipate that they will continue to slowly erode credit card payment dominance in digital commerce.
The Federal Reserve is set to launch its FedNow real-time payments service, currently in a pilot phase, sometime in 2023. We’ll be watching closely to see how this impacts the overall bank-to-bank payment space.
Still have questions about where the payments industry is headed this year and beyond? Our expert team would love to talk further – contact us to start a conversation.