Faster payment systems (FPS) like Zelle offer significant advantages but also expose consumers to authorized push payment (APP) scams. Fraudsters deceive individuals into authorizing funds to fraudulent accounts, leaving victims unprotected under current laws. ACI Worldwide reported $2 billion in U.S. APP losses last year and projected the amount to exceed $3 billion by 2028. In 2023, Zelle customers disputed $206 million in transactions, with victims absorbing over 80 percent of the losses.
The Federal Reserve Bank of Kansas City highlighted the need for enhanced fraud mitigation. Financial institutions and FPS operators can implement robust identity verification tools like biometric authentication, behavioral analysis and AI-based transaction monitoring to flag anomalies and reduce fraud risks. Measures such as confirmation of payee, monitoring mule accounts and sharing data on suspicious activity can further protect consumers.
Ultimately, collaboration among financial institutions, FPS operators, law enforcement and other stakeholders is key. While consumer vigilance remains important, combating APP scams requires systemic changes to maintain confidence in fast payment systems.
A study by Splitit and PYMNTS found that 38 percent of consumers plan to use buy now, pay later (BNPL) options for self-gifting this holiday season, with millennials and parents leading adoption. Approximately 67 percent of parents surveyed intend to finance holiday purchases using pay later options, which are seen as tools for financial flexibility and guilt-free splurging.
The study also revealed growing consumer interest in card-linked installment plans, with 39 percent favoring plans tied to general-purpose credit cards. Popular BNPL purchase categories include clothing (60 percent), luxury items like electronics, and furniture. About 27 percent of consumers are willing to pay full price when payments can be split.
Merchants stand to benefit, as 43 percent of shoppers said BNPL options influence where they shop. Early promotion of these plans is a plus, with 90 percent of non-users indicating they would consider BNPL if offered during the purchase journey. Improved financial management and increased spending power are driving this trend, making BNPL a vital tool for holiday shopping, researchers found.
A record 183.4 million shoppers were expected over Thanksgiving weekend, with consumers spending $650 during Black Friday-Cyber Monday (BFCM), a 15 percent increase over last year, according to Deloitte. With fewer shopping days in 2024, BFCM spending was expected to account for 56 percent of holiday budgets.
Consumers across income levels were stretching budgets through credit cards and BNPL options, especially millennials. Lower-income households planned to spend 22 percent more, while high-income groups anticipated spending $1,257, up 20 percent year-over-year. In addition, preferences for online-only retailers (69 percent) surpassed mass merchants for the first time, reflecting the importance of omnichannel strategies.
Preferred gift categories ranged from clothing (77 percent) to pet products (29 percent), with strong spending on gift cards. Retailers expected continued momentum, as half of consumers’ holiday shopping was already completed before BFCM, researchers noted. Deloitte and the National Retail Federation predicted record holiday sales, with totals reaching between $979.5 billion and $1.59 trillion. Online and in-store traffic was thriving, signaling a robust and value-driven shopping season.
Elon Musk called for the elimination of the Consumer Financial Protection Bureau (CFPB), arguing it duplicates other regulatory agencies. Created in the wake of the 2008 financial crisis, the CFPB’s mission is to protect consumers from unfair financial practices. The agency has secured major victories, such as recovering $2 billion from Wells Fargo for illegal activities and establishing protections for buy now, pay later (BNPL) users.
Republicans have long criticized the CFPB for regulatory overreach and have proposed bills to restructure it and limit its authority. Court challenges to its funding model culminated in a Supreme Court ruling upholding its legitimacy. Musk, appointed to lead a government efficiency initiative under President-elect Trump, may advocate for dissolving the CFPB, but his group lacks direct authority.
The proposal sparked intense debate on X, with critics highlighting the CFPB’s role in safeguarding consumers. While Musk’s stance resonates with some, opponents argue eliminating the CFPB risks repeating past financial crises and leaves consumers vulnerable.
The Thanksgiving-Cyber Monday shopping weekend drew 191 million shoppers, surpassing pre-pandemic levels and exceeding initial predictions. Brick-and-mortar stores saw gains, with 126 million Americans shopping in-store, while online traffic dipped slightly to 124.3 million. Despite fewer online shoppers, Black Friday online sales rose 14.6 percent year-over-year.
According to Mastercard, retail sales increased 3.1 percent over 2023, with strong in-store momentum continuing through the weekend. Consumers spent an average of $235 on gifts, focusing on categories like clothing, toys, and gift cards. NRF reported 81.7 million in-store Black Friday shoppers, marking the highest level since the pandemic.
Retailers benefited from omnichannel strategies, as 63 percent of shoppers used mobile devices. While the holiday season is shortened this year, consumer demand remains steady, with early promotions boosting traffic. Spending on experiences like travel also saw increases, particularly among high-income consumers. With strong momentum and value-focused shoppers, the NRF expects holiday sales to reach $979.5 billion to $989 billion.
The Clearing House (TCH) will raise the RTP network’s individual transaction limit from $1 million to $10 million, effective Feb. 9, 2025. This increase supports growing demand for larger instant payments in sectors like real estate and supply chain transactions. Businesses will benefit from real-time cash concentration and daily merchant payouts instead of delayed settlements, TCH stated.
TCH reported that the RTP network averages 1 million payments daily, handling 31.9 million transactions worth $25.7 billion in October 2024 alone. Since its launch, RTP has processed over $500 billion in payments. The increased transaction cap aligns with today’s 24/7 economy, where 42 percent of RTP payments occur outside traditional business hours.
While RTP leads in transaction value, the Fed’s competing FedNow service trails significantly, with a limit of $100,000 and lower adoption rates. From January to August 2024, FedNow handled only 414,827 transactions, though participation has grown to nearly 1,000 financial institutions. TCH’s transaction limit increase reinforces RTP’s role as the leading U.S. real-time payments network. 
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