This IDC Perspective discusses the annual NACHA Smarter Faster Payments conference that highlighted the transformative role of payments beyond transactional revenue, emphasizing their impact on deposits, products, innovation, and relationships. Key themes included the rise of instant payments, the enduring relevance of ACH, and the need for continuous innovation. Banks face liquidity concerns with faster money movement, while consumerization of payment demands seamless payment experiences. Payment technology buyers should prioritize adaptable systems, ACH modernization, and instant payment adoption, addressing liquidity concerns with real-time data analytics."Payments transcend transactions, driving innovation and relationships; embrace change or face opportunity costs. Modern systems offer better experiences and data integration." — Aaron Press, research director, Worldwide Payment Strategies at IDC
Executive Snapshot
Situation Overview
General Themes
Whether You Call It Instant, Faster, or Real Time, Change Is Coming
ACH Isn't Going Away
Some Cannibalization Between Payment Types Is Inevitable, and (Mostly) Welcome
Deposit Concerns Versus Liquidity Concerns
Consumerization of Everything, Including Payments
Continuous Innovation Is the New Normal
Some of the Leading Instant Payment Use Cases Are Surprising
Other Uses Cases Are Less Surprising and Growing Rapidly
Implement Both U.S. Instant Rails
Myths Are Getting Busted
Myth 1: Faster Payments Lead to Faster Fraud
Myth 2: Everyone Wants to Get Paid Quickly and Make Payments Slowly
Myth 3: My Customers Aren't Asking for Instant Payments
Advice for the Technology Buyer
Recommendations
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Related Research
Synopsis
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