In the United States and throughout the world, digital payments are now considered standard. Last year, digital payments totaled more than $6.6 trillion, an increase of 40% from the two years before. Within the next four years, this amount is estimated to reach $10.5 trillion, and as a result, consumers and companies will likely grow more demanding. Ingo Money – Money Mobility – September 2022 – The most recent information on how FIs are establishing quick and smooth cash transfers
Businesses are working really hard to deliver seamless services, yet cybersecurity worries are starting to surface. Businesses will place a high focus on finding a balance between the requirement for impenetrable security and client convenience.
This edition of “Money Mobility Tracker” examines what businesses and customers expect from secure money transfers for purchases, B2B payments, and more. It also examines how businesses are attempting to meet these demands, the reasons why unsatisfied customers would stop buying from them, and how the lingering threat of digital fraud may undermine these efforts.
Around the Financial Mobility Area
P2P payment applications have become one of the most widely used payment methods in recent years, in some cases surpassing the use of conventional checks. According to a recent study from Bank of America (BoA), 239 million transactions were made using the P2P payment app Zelle, a 26% increase over the 189 million payments made during the previous year. 156 million Zelle transactions were made in the second quarter of 2022 compared to 123 million checks, which represents a significant shift from the norm. BoA credits this change to an increase in small company use of Zelle, which currently accounts for more than 1.2 million of the 17 million active users of Zelle.
Since banks and other financial institutions (FIs) were founded, fraud has been a concern, but as payments become more digital, scammers have been more inventive with their methods. Experts have discovered a 41% overall rise in fraud attempts year over year, with mobile channels showing the biggest surge at 61%. One of the more well-liked methods is creating mule accounts online, and another is double-depositing checks, both of which put financial institutions (FIs) in the lurch when their clients discover the missing money. According to Ingo Money CEO Drew Edwards, many FIs are imposing 10-day holds before clients can access their money, but this is ineffective. After this 10-day waiting period, several check returns occur, making these payments insecure.
