By including send capabilities and real-time alerts, FIS’ financial institution clients are set to be able to benefit from the entire FedNow service by offering their consumers and commercial borrowers a modernised and unified digital payment experience.
The news comes just over two months after FIS completed the acquisition of Demica, a UK provider of supply chain finance, for USD 300 million. The deal came a decade after Demica, which had USD 40 billion in assets under the current administration, was sold to private investors, including JRJ Group, TomsCapital, and 76 West Holdings. FIS’ acquisition marked a successful exit for the stakeholder syndicate.
FIS’ current announcement comes during a period of expanding demand for digital payment services that can accelerate and simplify how funds are moved within the wider money lifecycle. As detailed in research conducted by the Federal Reserve Financial Services, in 2023, while 74% of consumers leveraged faster or instant payments, over 70% of consumers and businesses wanted their financial institutions to offer these solutions. Additionally, the research highlighted that businesses were utilising instant payments due to their ability to minimise costs and offer flexibility to pay and be paid as customers prefer.
Furthermore, being among the first in the industry to deliver end users with the ability to send instant payments, FIS intends to continue to advance its commitment to unlocking financial technology that meets its users’ needs, demands, and preferences. Commenting on the news, representatives from FIS mentioned that, with money moving between banks, consumers, and businesses in a complex cycle, credit and debit cards continue to hold a significant role in the payment experience. Despite this, slow or delayed transfers can negatively impact customer loyalty when they need to pay loans, rent, or time-sensitive bills. By providing the end user with direct access to send payments instantly leveraging FedNow, FIS intends to allow a more unified payment experience for its clients and the customers they serve.
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