May 15 - Offering real-time payments can help consumers better manage their financial lives, offer a differentiated banking experience and provide additional revenue streams for financial institutions, according to the second phase of a comprehensive research study released by FIS, a global provider of banking and payments technology. Among other findings, the study reveals that the most positive responses to real-time payments are among people that are most sensitive to payment timing, such as outbound foreign money transfer users.
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 and settle 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. The study sought to better understand the challenges consumers face with payments and how institutions can derive bottom-line benefits by providing real-time payments capabilities to their consumer and corporate customers. It also found that consumers seeking real-time payments services can afford and are willing to pay for fees associated with the services.
Overall, the study underscored that real-time payments resonate with consumers and that the immediate availability of funds is very important, both from a sender and a receiver perspective. To that end, 80 percent of overseas money transfer users believe it’s important for their recipients to be able to use the money they send to them immediately. Also, 58 percent of A2A users and 41 percent of P2P recipients want to have immediate access to their funds.
Other key findings include:
“The findings of our research and survey are clear – real-time money movement is resonating with the majority of consumers, and financial institutions have a tremendous opportunity to capitalize on the white space that real-time payments can provide,” said Anthony Jabbour, executive vice president, North American Financial Institutions, FIS. “The research confirms that consumers are willing to pay for these real-time services and that mobile technologies will be a catalyst for adoption in this space. Helping financial institutions seize this opportunity is a key element of FIS’ broader payment vision.”
The second of a three-part series, the study’s findings are being unveiled on May 14 at FIS Client Conference 2013, FIS’ annual conference for large and mid-tier financial institutions. The first phase of the study, highlighting findings that create opportunities for community institutions, was unveiled last month at InfoShare 2013, FIS’ annual gathering of community banking clients. The final phase will be released in the summer and will disclose more detailed findings about consumer behaviors and payment preferences in the retail payments channel.
The study’s research method was comprised of qualitative research with focus group respondents, including overseas money transfer users, followed by a national quantitative survey with 1,508 adult financial decision makers who conduct their banking online or through mobile apps and interviews with 30 executives in the banking industry.
Real-time payments are a key pillar of FIS’ broader global payments vision. FIS is in the process of piloting PayNet, the company’s real-time authorization and settlement solution powered by the NYCE network. PayNet is currently being integrated into FIS’ broad payments portfolio, including bill pay, EFT, retail solutions, electronic commerce, P2P and mobile payments solutions.
FIS (NYSE: FIS) is the world’s largest global provider dedicated to banking and payments technologies. With a long history deeply rooted in the financial services sector, FIS serves more than 14,000 institutions in over 100 countries. Headquartered in Jacksonville, Fla., FIS employs more than 35,000 people worldwide and holds leadership positions in payment processing and banking solutions, providing software, services and outsourcing of the technology that drives financial institutions. First in financial technology, FIS tops the annual FinTech 100 list, is 425 on the Fortune 500 and is a member of Standard & Poor’s 500 Index. For more information about FIS, visit www.fisglobal.com.