SRM Publishes Report on the Impact of FedNow and the Future of Instant Payments in the U.S.
Date – 06-Aug-2024
SRM, an independent advisory firm serving financial institutions in North America and Europe, has released a new report titled “Examining the First Year of FedNow & the State of Instant Payments.”
Following the Federal Reserve’s launch of FedNow Service just over a year ago, the new instant payment infrastructure has prompted banks and credit unions to reevaluate their payment strategies and explore its applications for both business and consumer clients. The anniversary provides a timely opportunity to assess the current landscape of instant payments in the U.S.
The report delves into the current state of instant payments, drawing insights from SRM’s July Market Pulse survey. It identifies key motivators and barriers to adoption, highlighting that the window for proactive engagement is rapidly closing. Financial institutions are urged to act by 2025 to remain competitive.
“Instant payments are a crucial element of a comprehensive payments strategy,” said Dean Nolan, Managing Director at SRM. “Our research reveals the main obstacles to adoption, but these challenges can be addressed. Financial institutions should adopt a holistic approach to payments to ensure they meet evolving customer needs and market demands.”
For over 30 years, SRM has assisted more than 1,000 financial institutions in enhancing their bottom lines by securing optimal terms across various sectors including card networks, payments, and technology. SRM continues to provide strategic, consulting, and technology guidance to help clients reduce costs, seize revenue opportunities, and maintain a competitive advantage.
