June 26, 2023
Businesses and Consumers Are Embracing Faster Payment Solutions
Businesses and consumers are seeking instant and more efficient payment solutions. Recent research conducted by the Federal Reserve has highlighted the growing appetite for faster payments among businesses and consumers in the United States.
In today's fast-paced digital world, businesses and consumers are seeking instant and more efficient payment solutions. Recent research conducted by the Federal Reserve has highlighted the growing appetite for faster payments among businesses and consumers in the United States. At Lynk, we understand the importance of meeting this demand and have developed Pay by Bank, a secure and user-friendly platform that allows merchants to accept low-cost payments directly from their customer's bank accounts.
Meeting the Need for Speed
According to Federal Reserve studies, a significant majority of businesses (83%) and consumers (75%) are already utilizing faster payment methods. Furthermore, the surveys revealed that 66% of businesses and 61% of consumers expressed their intention to increase their usage of faster payments in the future. This growing trend signifies a shift towards a more efficient and convenient payment ecosystem.
Flexible Payment Options for Businesses: In an ever-changing business environment, flexibility is crucial. The studies identified that 62% of businesses identified cash flow management as one of their most impactful challenges. To overcome these obstacles, businesses are actively seeking greater flexibility and speed in their payment options. Lynk understands this need and provides a reliable solution that enables automated payments and offers the flexibility of funds. By leveraging Lynk's platform, businesses can streamline their payment processes, lower costs, and effectively manage their cash flow.
The Federal Reserve research highlighted several key findings that demonstrate the importance of instant payments for businesses:
Timely Payments: 28% of businesses cited slow payments as their top challenge, causing processing delays. The need for improved cash flow is paramount, and Lynk's platform ensures that payments are processed quickly and efficiently.
Cost Reduction: Approximately 45% of businesses believe faster payments will lead to lower costs. By adopting Lynk's payment solution, businesses can benefit from efficient processing, streamlined workflows, and the attachment of remittance data, thereby reducing operational expenses.
Bank Dependence: A significant majority (86%-90%) of businesses, particularly larger ones, express the importance of their banks offering instant payment capabilities.
The Rise of Mobile Payments
The Federal Reserve studies also shed light on the changing consumer behavior and preferences regarding payments. The use of mobile payment options surged from 10% in 2013 to a staggering 74% in 2022. Furthermore, consumers between the ages of 35 and 54 have caught up with millennials in terms of utilizing mobile devices for banking activities. Recognizing this shift, Lynk has optimized its platform to cater to the increasing number of consumers relying on mobile apps for payments.
Key Survey Findings:
Consumer Adoption: Over half of consumers (53%) are now leveraging non-bank mobile apps to make instant payments.
Mobile Banking: Consumers aged 35 to 54 are utilizing smartphones more frequently than millennials for various banking activities such as checking account balances, making bill payments, and account-to-account transfers.
Increased App Usage: The percentage of consumers using one or more payment apps increased by approximately 50% between 2021 and 2022.
The findings from the Federal Reserve studies highlight the growing demand for instant payment solutions among businesses and consumers. Lynk understands the need for flexibility, speed, and security in today's evolving payment landscape. Our platform empowers merchants to accept low-cost payments directly from customer's bank accounts, enabling them to pocket the savings, reinvest in driving customer loyalty, and ultimately enhance their overall business operations. With Lynk, businesses can embrace the future of payments and embark on a journey toward a more efficient and customer-centric payment ecosystem.
Read the full survey report from the Federal Reserve here.
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Lynk offers a unique payment solution that is set to transform the way businesses handle transactions online or offline. Our innovative payment solution provides a cost-effective payment process and cultivates customer loyalty and rewards. With Pay by Bank, businesses can seamlessly collect instant or recurring payments with fee savings of up to 90% while enjoying instant access to capital, lower fees, higher revenue, and a seamless omnichannel experience. To learn more, visit: www.trylynk.com
