Category: Payments

DigitalPaymentsSecurity

Digital Identity and Payment Systems Merge, Reshaping Financial Services Landscape

The convergence of payments and digital identity is transforming financial services, with regulators and tech giants driving adoption. Financial institutions must navigate authentication complexity and fraud risks while meeting consumer demand for seamless experiences, analysts suggest.

The Inevitable Convergence

The financial sector is witnessing what sources indicate is an inevitable transformation: the merging of payment systems and digital identity verification. According to reports from PYMNTS.com, this convergence is already underway despite being frequently overlooked amid other industry developments. Technology giants are embedding digital IDs into their ecosystems, while governments and private entities are rolling out trusted digital credentials at scale, many with banking and payments positioned at the center.

by Darren Holt
CloudFintechPayments

FedNow’s Cloud-Driven Expansion Reshapes U.S. Instant Payments Landscape

The Federal Reserve’s FedNow instant payment service has expanded from 35 to over 1,400 participants since its 2023 launch, with transaction volume increasing more than tenfold year-over-year. Cloud-native architecture built on AWS is enabling unprecedented speed in financial service deployment and emergency payment processing.

Explosive Growth in FedNow Adoption

The Federal Reserve’s FedNow Service has demonstrated remarkable expansion since its 2023 launch, with participation growing from 35 to more than 1,400 institutions, according to reports. Transaction volume and value have reportedly increased by double and triple digits year-over-year, with sources indicating the service has seen north of a 10x increase in transaction volume.

by Darren Holt