Instant Payments May Be a Good Alternative for Disbursements, Study Finds
According to a study conducted by Forrester on behalf of mobile check deposit company Ingo Money, $6 to $9 trillion in B2C disbursements are paid out annually, and nearly 93 percent of companies are using legacy payment methods such as checks and ACH deposits for payouts.
The study used a base of more than 1,000 U.S. consumers who have received a disbursement in the past year. It found that 62 percent of consumers say that it is “very important” that they receive their funds immediately and that those funds are available to be used at the moment of transaction. Additionally, 63 percent of consumers indicated that they prefer direct deposit or same-day direct deposit into their bank accounts. This preference is because it is the fastest and most convenient way for them to be paid, according to the study.
Instant payments may be a way to meet these requirements, the study suggests. It defines instant payments as ones that are “made instantly or in real time to a chosen account or card where funds are immediately available and safe to spend,” and found that nearly 40 percent of consumers have heard of instant payments, but have never used them. Additionally, 71 percent of consumers indicated that they would try instant payments at least once or that they might be the fastest and safest way to receive money. More specifically, 37 percent said that they would try an instant payment for disbursement once, while 34 percent said that an instant payment sounds like the fastest and safest option to receive a disbursement.