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NewsBriefs

This article contains excerpts from news stories recently posted under piloting an ACH-based system that will eventually transi-
Breaking Industry News on our homepage. For links to these and other tion to Fiserv’s NOW network, integrating FedNow and
full news stories, please visit www.greensheet.com/breakingnews. RTP capabilities. And Visa announced plans to launch a
php. similar service in Europe, underlining the global appeal of
low-cost, account-to-account payment methods.

For merchants, the primary draw lies in significantly re-
duced transaction fees compared to card payments, which
can save businesses thousands annually. As ACH and
real-time payment networks expand, pay-by-bank has the

Consumer holiday shopping plans potential to redefine payment preferences across indus-
tries.
bode well for acquirers
Holiday pay later plans entice
A survey by The Strawhecker Group and the Electronic millennials, parents, self-gifters
Transactions Association highlights a nuanced picture of
holiday spending this year. While economic uncertainty As holiday shopping accelerates, pay later options are be-
has many consumers budgeting cautiously, 18 percent of coming an indispensable tool for retailers. Research by
respondents still anticipate overspending. Splitit and PYMNTS revealed that 38 percent of consum-
ers plan to use these services for self-gifting, with millen-
The survey, conducted among 992 consumers in early Oc- nials and parents leading the charge.
tober of this year, also found that 46 percent had already
begun shopping, and one in five had completed at least Flexible payment plans, including BNPL and card-linked
half of their holiday purchases. Most plan to spend be- installments, are viewed as essential for managing holi-
tween $250 and $500, similar to last year, though over a day expenses while justifying larger purchases. Sixty-
third admitted they might exceed their budgets. seven percent of parents surveyed said pay later options
reduce financial stress. Fifty-two percent of millennials
Consumers are prioritizing payment methods that offer shared similar sentiments.
convenience and flexibility, such as tap-to-pay and buy
now, pay later (BNPL) options. The adoption of BNPL con- The study found that 62 percent of consumers prefer to
tinues to grow, especially among Gen Z and millennials, know upfront if a retailer offers pay later services, which
with 58 percent of respondents new to these services. Mer- suggests the importance of early promotion to attract
chants are advised to leverage data-driven tools to align shoppers. Among the most popular categories for these
with these shifting preferences and address consumer payments are clothing, electronics, and luxury items, with
concerns, including those about shipping delays and gas 28 percent of respondents highly likely to rely on install-
costs. ment plans for such items during the holidays.

Acquirers play a crucial role by helping merchants imple- Retailers that highlight these options can not only boost
ment solutions like alternative financing and digital pay- sales but also enhance customer loyalty, as nearly half
ment systems to optimize customer experiences during of surveyed parents and millennials indicated these ser-
the high-pressure holiday season. vices influence where they shop. The findings underscore
Cannabis dispensaries, Walmart the growing importance of flexible payment solutions in
meeting consumer demands during the competitive holi-
push pay-by-bank boundaries day season.

Pay-by-bank payments, powered by ACH and real-time Scams, check fraud continue
payment networks, are gaining momentum in the United to plague financial world
States, driven by adoption in cannabis dispensaries and
other regulated industries. The financial industry is grappling with a surge in fraud,
with check fraud seeing dramatic increases despite the
CanPay, a leading provider for cannabis retailers, recently digital transformation of payments. According to a Unit21
received approval to process payments for medical mari- report, 30 percent of surveyed banks have experienced
juana pharmacies across Utah, further cementing its pres- check fraud growth of 25 to 75 percent over the past year,
ence in this niche market. Serving over 325,000 consumers attributed partly to the resurgence of government assis-
at 1,150 dispensaries nationwide, CanPay facilitates secure tance checks.
account-to-account transfers from over 14,000 financial in-
stitutions, which highlights its commitment to compliance Donna Turner, a former Bank of America executive, em-
and innovation in a challenging regulatory landscape. phasized the vulnerability of checks, describing them as
“low-tech and easy targets” for fraudsters.
Meanwhile, mainstream retailers are also exploring pay-
by-bank solutions. Walmart, in partnership with Fiserv, is
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