WASHINGTON–Some two in three of businesses in the U.S. indicated they are inclined to use instant payments should the option be offered by their primary financial institution, according to a new survey from Federal Reserve Financial Services (FRFS).
The FRFS, which provides payment services under the Fed that include the FedNow instant payments service, said its survey found businesses using instant payments reported 10% greater satisfaction with their primary financial institution than businesses that do not.
The Findings
According to the FRFS, its survey also found:
- 38% of businesses want instant digital wallet funding and defunding
- 34% want to pay recurring bills and invoices instantly.
- 29% said they are increasing prioritization of “just-in-time” B2B payments
- 29% said they are increasing urgent same-day transactions for customers (also 29%).
- Interest in request for payment grew to 22% in 2025 (up from 14% in 2024), as offerings which integrate financial services like payment functionality into non-financial platforms become more common.
- There was interest in both large (17%) and small disbursements (11%), which could include legal settlements and refunds, respectively
- 35% of businesses of all sizes see instant payroll as the top use-case. The FRFS noted that while just 3% of businesses now use instant payroll, the survey found that 72% of “very large” businesses and 44% of “very small” businesses want instant payroll capabilities for their organization.
- 17% expressed interest in expedited payroll
FedNow Findings
According to the report, banks and credit unions are using instant payment use cases for their customers and members using FedNow, with key transactions over the FedNow network including off-cycle payroll and earned wage access, digital wallet defunding, real estate escrow payments, auto loan disbursements, online marketplace seller payouts and more.
The FRFS reported that more than 1,300 banks and credit unions headquartered in all 50 states are now live on FedNow, with small and midsize financial institutions, including community banks and credit unions, make up more than 95% of participants on the network.
More Than One-Million Transactions
It further reported that during Q1 more than 1.3 million transactions were settled on FedNow, a 43% increase over the prior quarter, with consumers and businesses sending an average of $540 million through the service per day.
