More work is needed to ensure that most faster payment products are financially inclusive, according to a new report from the US Faster Payments Council (FPC).
The FPC report on faster payments and financial inclusion identifies the features needed to strengthen financial inclusion through faster payments. 88 respondents from a range of financial institutions, including banks, credit unions, payment providers and enterprises, indicate what stage of accelerating payment integration they are currently in and what needs to be done to ensure all solutions are inclusive for everyone in the US are.
The survey results showed that while financial institutions are exploring and prioritizing faster payments, there are numerous inclusion issues that need to be addressed. Only 56% of respondents currently offer faster payments, with another 35% planning to do so.
Key areas that urgently need improvement include better education about faster payment options for consumers, better user experience and accessibility for all populations, and better collaboration among stakeholders. All of this together should lead to a more inclusive payments ecosystem
Reed Luhtanen, Managing Director of FPC, emphasizes: “FPC is committed to helping promote an inclusive financial ecosystem. This survey report provides valuable insights to help our members develop faster payment solutions that truly meet the needs of all consumers and lead to a better, more equitable financial landscape.”
Anthony Serio, chief risk officer at Sphere Labs and chair of the FPC Financial Inclusion Work Group, continued: “Our latest survey shows promising progress in adopting faster payments across a wide range of financial institutions, including banks, credit unions and payment processors,” the survey clarified Concerns about fee variability, cross-border payment options and the critical need for stronger consumer protection and confidence-building measures. Our mission going forward is clear: to ensure that faster payments not only evolve in terms of speed and efficiency, but also become truly inclusive and comprehensively responsive to the needs of all Americans.”
David True, partner at PayGility Advisors and head of the FIWG survey subgroup, added: “While financial institutions are beginning to embrace faster payments, their efforts to ensure financial inclusion are still at an early stage and there is still much work to be done “Our survey identifies the critical areas that institutions need to focus on to ensure faster payment solutions are accessible and beneficial to everyone, especially the unbanked and underserved populations.”