Connecting the Dots: How Adoption of Instant Payments Can Lead to a More Inclusive Economy
July 12, 2023
Payments Access
2023 • No. 2023-1
July 2023
Digital Object Identifier (DOI): https://doi.org/10.29338/pa2023-01
Abstract
We examine how instant payments are an essential component of increasing financial inclusion. We explore how the Federal Reserve System, together with the private and public sector, is encouraging widespread adoption of instant payments because of their potential to help improve financial inclusion across a broad range of demographics and circumstances.
This paper looks specifically at the portion of the population who rely on cash as their primary means of conducting transactions. We lay out financial exclusion issues unique to the United States and suggest where discussions and decisions need to be directed, and we offer policymakers a new approach to financial inclusion that focuses on options available to those whose reliance on cash puts them at even more risk of being excluded from the financial system.
We thank Alex Bau, Nancy Condon, Lonnette Dafney, Bob Hunt, Kelly McGuire, Margaret Riley, and Kirstin Wells of the Federal Reserve Banks of Atlanta, San Francisco, Philadelphia, Cleveland, and Chicago and of the Federal Reserve Board for their guidance and helpful comments.
The views expressed in this paper are solely the responsibility of the authors and should not be interpreted as reflecting the views of the Federal Reserve Bank of Atlanta or Federal Reserve Financial Services, or anyone else in the Federal Reserve System.