Instant payments, which are the transfer of value without any delay, are predicted to surpass $110 trillion by 2029, almost doubling the $60 trillion that is already occurring today.
In a report published by Juniper, instantaneous payments are being driven by regulation, including FedNow in the US and new rules in Europe. At the same time, complementary services will be needed, like identity verification, to counter fraud.
Confirmation of Payee services are said to be critical to the success of instant payments. This is due to the rise of payments fraud. These systems must be rolled out simultaneously, as the fraudsters up their game.
Nick Maynard, VP of Fintech Market Research at Juniper Research, says that FedNow aims to bring instant payments to a new level of scale.
“Achieving this transformation will require stakeholders throughout the payments ecosystem to reimagine their processes, with slow-to-move vendors being left behind.”
But scams are more prevalent than ever, and the speed of transfers means that fraud must be detected in real time, says Maynard.
“Pairing instant payments roll-outs with fraud detection advancements is vital to ensuring the modernisation of payments does not come at the cost of a deluge of fraud,” Maynard concluded.”
