Fintech Rising Weekly: Focus on Payments Growth – FinTech Rising

Welcome to this week’s Fintech Rising Weekly newsletter, where we bring you the most interesting and relevant articles in the industry. This week, we dive into the Federal Reserve’s 2023 Diary of Consumer Payment Choice, highlighting the continued dominance of credit cards and the stabilization of cash usage. We also explore the rapid adoption of FedNow’s real-time payments network, with significant growth in transactions. Additionally, we cover Apple’s concessions in the EU Tap-to-Pay dispute, new guidelines from China on payment services for foreigners, and more insights into the business of digital wallets.

2023 Findings from the Diary of Consumer Payment Choice

Findings from the Federal Reserve’s 2023 Diary of Consumer Payment Choice reveals that credit cards remain the most popular payment method, continuing a trend that began during the pandemic. Cash usage has stabilized but remains lower than pre-pandemic levels, with consumers holding more cash on hand. The survey also shows a steady use of debit cards and a leveling off of mobile app payments. Interestingly, the data indicates that while digital payments are prevalent, people still prefer cash for small transactions.

Apple Accepts More Concessions to Settle the EU Tap-to-Pay Dispute

In a PaymentsJournal article, debit cards are highlighted as the most used and fastest-growing form of payment. This trend is evident as Apple makes concessions in the EU Tap-to-Pay dispute, allowing third-party digital wallets access to the iPhone’s NFC technology. This move is expected to further boost the use of digital wallets and contactless payments, aligning with the growing preference for debit cards over other payment methods.

FedNow’s first year, and its impact on real-time payments

In an article from American Banker, the Federal Reserve’s FedNow network is highlighted for its rapid adoption in real-time payments, with 33% of banks offering the service and 43% planning to. The RTP Network saw substantial growth, processing 82 million transactions worth $55 billion in Q2 2024, up from 57 million transactions worth $29 billion the previous year. RTP now includes 652 banks and credit unions, with over 250,000 businesses and 5 million consumers using the service monthly.

Digital Transactions also had a great piece this week titled “A Panoply of Factors Help Drive Record Volume for the Big Banks’ Real Time Payments Network.” Check it out here!

Commission accepts commitments by Apple opening access to ‘tap and go’ technology on iPhones

In this press release, the European Commission has made Apple’s commitments legally binding to address competition concerns over Apple’s NFC technology access for contactless payments. Apple will now allow third-party wallet providers to access this technology, enabling more innovation and choice for users. These commitments, effective for ten years, aim to ensure fair competition and will be closely monitored by a trustee. This decision supports the broader goals of the Digital Markets Act and the Digital Euro.

The Business of Wallets

In its latest article, Bits About Money explores the evolution and business model of digital wallets, highlighting their shift from physical to electronic formats. It delves into how companies like PayPal and Cash App make money by managing transactions and balances within their ecosystems. The article also touches on the regulatory complexities and the impact of mobile wallets like Apple Pay and Google Wallet in the financial technology space. 

China Unveils Guidelines on Optimized Payment Services for Foreigners

In the latest China Briefing article, China unveils new guidelines to streamline payment services for foreigners, making it easier to use mobile payments, bank cards, and cash. The People’s Bank of China aims to address previous barriers by promoting the acceptance of international cards, easing mobile payment requirements, and ensuring widespread cash acceptance. This initiative is expected to enhance convenience for foreign visitors and boost tourism and international business interactions.

That’s a wrap for this week’s Fintech Rising Weekly newsletter! We hope you enjoyed our deep dive into the latest trends and insights, from the enduring popularity of credit cards to the impressive growth of FedNow’s real-time payments network. With Apple’s new commitments in the EU and China’s updated guidelines for foreigner payment services, it’s clear that the landscape of digital payments is evolving rapidly. Thanks for tuning in, and we’ll see you next week with more exciting updates in the fintech world!

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• Source: https://fintechrising.co/fintech-rising-weekly-focus-on-payments-growth/