Business Adoption of Emerging Electronic Payment Tools is on the Rise, Aite-Novarica/BNY Mellon Report Shows

Rhea-AI Summary

BNY Mellon, in collaboration with Aite-Novarica Group, released a report on commercial payment trends highlighting the growth of digital payment tools such as real-time payments (RTP) and digital wallets. The study reveals regional differences in payment channel adoption, with a forecasted increase in instant payments in the U.S. and Europe. Key findings include that 67% of European corporations are using instant payments, while 10% of North American businesses plan to adopt cryptocurrencies soon. BNY Mellon positions itself as a gateway for businesses to access diverse payment solutions.

Positive

• BNY Mellon's collaboration with Aite-Novarica Group emphasizes the adoption of digital payments, boosting service offerings.
• 67% of European corporations utilize instant payments, indicating high market acceptance in that region.

Negative

• Only 7% of European and 10% of North American businesses plan to adopt cryptocurrencies, reflecting slow market penetration.
• 46% of North American corporates are currently using instant payments, which is significantly lower than European counterparts.

NEW YORK, Oct. 6, 2022 /PRNewswire/ -- BNY Mellon, in collaboration with Aite-Novarica Group, today released a study examining commercial payment trends, finding that businesses are embracing a range of emerging digital tools such as real-time payments (RTP) and digital wallets.

The report also found significant regional differences in channel usage. The adoption of instant payments is expected to increase, both in the U.S. via the RTP® network and the soon-to-be-launched FedNow service, and in Europe and the U.K. with the SEPA Credit Transfer Instant and Faster Payments services.

Cryptocurrencies – tipped as a game changer for payments – shows growth mainly forecasted among existing users. Meanwhile, the usage of cash and checks is declining on a net basis, although they are embedded in many businesses' workflows, notably in the U.S.

Key findings of the survey include:

• In North America, and Europe and the U.K., digital wallets are expected to see the most growth in the next 12 months.
• Among non-users of cryptocurrencies, only 7% of European businesses and 10% of North American businesses intend to utilize them in the near-term.
• 67% of European corporations surveyed are using instant payments, compared to 46% of corporates in North America.
• 86% of European and U.K. non-users of instant payments note that they have some level of interest in using the transaction method in the next 12-24 months, with 68% of non-users in North American in the same camp.
• 76% of North American businesses have used checks in the last 12 months, compared to 61% in Europe.

"These study findings show that companies currently embracing emerging payment technologies are already reaping the benefits, while those slower to adopt them need more support to make the switch," says Carl Slabicki, Co-Head of Global Payments within Treasury Services at BNY Mellon. "That is why we are positioning ourselves as gateway for businesses to access all possible payment solutions as quickly and easily as possible."

"The report paints a picture of a payments landscape that is complex and incredibly varied from region to region," said Gilles Ubaghs, author of the study at Aite-Novarica Group. "No single payment method is emerging as the preferred solution and that fragmentation is likely to continue for some time before we see any consolidation in payment types."

The findings of the report are based on feedback from 790 employees of mid-size and large organizations in seven North American and European countries. 

ABOUT BNY MELLON 
BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment and wealth management and investment services in 35 countries. As of June 30, 2022, BNY Mellon had $43.0 trillion in assets under custody and/or administration, and $1.9 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com. Follow us on Twitter @BNYMellon or visit our newsroom at www.bnymellon.com/newsroom for the latest company news.

Contact:       
Nina Truman
nina.truman@bnymellon.com 
+1 212 815 2006

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SOURCE BNY Mellon

FAQ

What are the key findings of the BNY Mellon Aite-Novarica Group report on commercial payment trends?

The report highlights the rise of digital payment tools, with significant regional differences in adoption. In Europe, 67% of corporations use instant payments compared to 46% in North America.

How is BNY Mellon positioned in the emerging payment solutions market?

BNY Mellon positions itself as a gateway for businesses to access a variety of payment solutions quickly and easily.

What is the expected growth of digital wallets and instant payments according to the recent study?

The study forecasts significant growth in digital wallets in North America and Europe, with increased usage of instant payments anticipated.

How have traditional payment methods like cash and checks been affected according to the BNY Mellon report?

The usage of cash and checks is declining, with 76% of North American businesses and 61% of European businesses using checks in the last year.