Describe a major roadblock still preventing the use and adoption of instant payments and what businesses and FIs can do to overcome this barrier.
“The layover. No one really wants to spend extra time waiting in an airport en route to their tropical destination or to their home sweet home. You just want to get there, where flying direct is the ideal way to go. And it is no different for disbursements. In order for instant payment adoption to really take off, the disbursement solution provided by enterprise businesses and banks must offer consumers and SMBs real payment choice — not just a single option they have to sign on for if they want to get paid faster. This causes the extra ‘layover,’ or step, in the process to then move the money out to where it really needs to go.
With the pandemic putting increased financial pressure on Americans, especially on SMBs that are actively searching for tools to help manage their cash flow, tying instant offerings to specific accounts or wallets becomes a major roadblock to adoption. The payment layover is not the direct flight and delivers an underwhelming customer experience.
Bringing instant payments to ubiquity and finally killing the check will require banks and businesses to put as many options on the table as possible and let customers’ preferences be their ‘North Star.’”
CEO at Ingo Money