According to a new US Faster Payments Council (FPC) report, more work is needed to ensure most faster payments products are financially inclusive.
The FPC's report on faster payments and financial inclusion identifies the features required to bolster financial inclusion with faster payments. 88 respondents across a range of financial institutions including banks, credit unions, payment providers, and businesses reveal the stage of faster payments integration they are currently at and what needs to be done to make sure all solutions are inclusive for all those in the US.
Findings from the survey revealed that while financial institutions are exploring and prioritising faster payments, there are numerous inclusion 'painpoints' that need to be addressed. Only 56% of respondents currently offer faster payments, with an additional 35% planning to do so.
Key areas that are in desperate need of improvement are better education about faster payments options for consumers, better user experience and accessibility for all demographics and better collaboration between stakeholders. All these combined should make for a more inclusive payment ecosystem
FPC executive director Reed Luhtanen highlights that: "The FPC is committed to helping foster an inclusive financial ecosystem. This survey report provides valuable insights that will guide our members in creating faster payment solutions that truly serve the needs of all consumers, leading to a more equitable financial landscape."
Anthony Serio, chief risk officer at Sphere Labs and FPC Financial Inclusion Work Group chair, continues: "Our latest survey reveals promising progress in the adoption of faster payments across a diverse range of financial institutions, including banks, credit unions, and payment providers. The survey highlighted concerns related to fee variability, cross-border payment capabilities, and the essential need for stronger consumer protections and trust-building measures. Our mission moving forward is clear: to ensure that faster payments evolve not just in terms of speed and efficiency, but also become truly inclusive, addressing the needs of all Americans comprehensively."
David True, partner at PayGility Advisors and the FIWG Survey subgoup lead, adds: "While financial institutions are beginning to engage with faster payments, their efforts to ensure financial inclusion are in the early stages, and much work needs to be done. Our survey identifies the critical areas where institutions must focus to ensure that faster payment solutions are accessible and beneficial to all, especially the unbanked and underserved populations."