FIS has announced results of the third phase of a consumer banking behavior study finding that "consumers who transfer money person-to-person -- especially those sending money overseas -- want to make those transactions immediate; and, while young consumers are more likely to be among the early adopters of real-time payments, most importantly, they want the process to be convenient and easily accessible."
Real-time payments are clearly the future of money movement, according to the consumer demands laid out by our data,” said Anthony Jabbour, EVP, North American Financial Institutions, FIS.
“As the research has shown, people trust their financial institutions to bring them real-time payment solutions, but they will use other avenues if their bank can’t meet their needs. For that reason, financial institutions must adapt to keep step with their customers and not fall behind non-bank competitors.”
The study, conducted by global market research provider Ipsos Vantis, on behalf of FIS, gauged consumer sentiments and potential economic value for banks that instantly authorize transactions in four key market groups: outbound foreign money transfer users, account-to-account (A2A) transfer users, person-to-person (P2P) payment users and online bill payers.
Faster payment was rated as being important by 80 percent of outbound foreign money transfer users, because it provides both senders and recipients with peace of mind. The majority (58 percent) of A2A users also want to be able to transfer their money between accounts quickly and a large percentage (41 percent) of P2P users want recipients to be able to access funds immediately. Potential adopters of outbound foreign money transfer and P2P real-time payments most often want to use real-time applications to send money -- as gifts, payments, for emergencies and more -- to family members and friends.
Another significantly desired convenience is the ability to enter a recipient’s email address or phone number to route a transaction instead of a long series of bank and checking account numbers. Demand for this convenience is particularly strong among younger generations. Fifty-five percent of Gen Y and 43 percent of Gen X consumers stated they would be more likely to use real-time payments if they could transfer funds in this way.