A final version of a Federal Reserve report on the future of traditional and electronic payments in the United States, of which the preliminary findings were debuted publicly at the 118th Credit Congress in Orlando last month, is now available to the public.
The 2013 Federal Reserve Payment Study Detailed Report dropped Thursday. Among the findings in the report, spearheaded by the Fed’s Financial Services Division, were that businesses continue to use wire transfers at a high rate (287.5 billion transaction worth more than $1 trillion in 2012 alone), the desire for mobile payment options is increasingly quickly even in B2B circles and check-writing has seen a massive decrease when the transaction is a considered a smaller than average (for the payee) amount. At Credit Congress and in an interview with NACM’s Business Credit Magazine for the July/August issue, Dan Gonzalez, vice president of industry engagement and awareness for the Federal Reserve Bank of Chicago, outlined a number of other B2B specific findings in the report. They included that businesses were more than twice as likely to be willing to spend more money for payment speed improvements than consumers, won’t use a payment method unless it is widely accepted, would rather share an email address or a phone number to make and receive payments to avoid divulging sensitive bank account information to the payee and fear fraud tactics more now than ever before.
The report, available at http://www.frbservices.org/communications/payment_system_research.html,
provides detailed information about the summary
findings from research done in conjunction with several organizations,
including NACM (an active member of the Federal Reserve Bank of Minnesota-led Remittance
Coalition), which hosted a fall teleconference and Q&A on the topic.
"The 2013 Federal Reserve Payments Study collected a broad cross-section of information related to complex consumer and business payments use, and the overview contained in today’s report offers a more complete picture of how the information can be used to better understand developments in the payments system,” said Jim McKee, senior vice president of the Federal Reserve Bank of Atlanta, this week. “The industry can use this data to continue to improve the US payments system."
Research on the payments effort has been described as “ongoing,” and the issue of fraud in payments, especially electronic, appears to be the paramount area of focus, going forward.
- Brian Shappell, CBA, CICP, NACM staff writer
Please view the latest edition of Business Credit by clicking
here for more on Gonzalez’s Credit Congress appearance. And remember, the
magazine is now available in Apple/iPad-compatible formats at the NACM website
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