Popularity of Government Initiatives for Digital Payments Surges in U.S.

As of 2024, approximately 51% of U.S. businesses use the RTP network and FedNow to make instant payments. In two years, government digital payment services are expected to be used by about 68% of U.S. businesses.

According to the U.S. Bank study, government digital payment initiatives are becoming increasingly popular among U.S. businesses and consumers. This year, more than half of American companies integrated the RTP network and the FedNow service.

RTP (real-time payments) and FedNow are real-time payment processing platforms developed by The Clearing House and the U.S. Federal Reserve, respectively. They’re available to all federally insured depository institutions. As of 2024, over 480 financial institutions in the U.S. use RTP, while more than 900 adopted FedNow.

U.S. Bank analysts found that in 2024, 51% of U.S. businesses integrated instant payment technology into their processes, transferring digital payments through RTP and FedNow. In comparison, only 42% did so in 2023, and approximately 38% in 2022.

The U.S. Bank report also highlighted that eight out of ten businesses surveyed expect to be using instant payments within the next two years. Furthemore, the study reveals that over 40% of companies with annual revenues exceeding $100 million are leveraging the RTP network.

The U.S. Bank study is based on a survey of more than 2,000 senior financial executives in the U.S.

The rising trend in digital payments is also underscored in the PYMNTS Intelligence report, which forecasts that within the next two years, at least 68% of U.S. businesses will be making instant payments via RTP or FedNow. Among the most active industries are:

• consumer goods and retail (81%);
• hospitality and entertainment (75%);
• healthcare (70%).

However, despite the potential of digital payments to improve liquidity management and customer engagement, traditional payment methods are still more in demand. For example, check payments account for about 15% of B2B payments in retail and manufacturing, and 21% in real estate deals.

PYMNTS Intelligence analysts also emphasize that the popularity of instant payments is directly related to solving the technological and operational issues of implementing such systems. According to their report, the main barriers to adopting digital payments include:

• high cost of system upgrades (82%);
• risk of data leakage (48%);
• lack of experience in combating financial crime (34%).

The FedNow service was officially launched in July 2023. The U.S. Federal Reserve positioned the service as an interim alternative to CBDCs.

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