Easing Fraud Concerns Advance Banks’ Push for Instant Payments

Instant payments give businesses rapid access to funds, but their near-irreversibility has made AI-enabled fraud, account takeovers and data breaches central concerns for banks promoting the technology. PYMNTS Intelligence said businesses often overestimate the risks of instant payments while overlooking that paper checks are more vulnerable to alteration or fraudulent cashing. This gap in security perceptions has slowed adoption.

The latest PYMNTS Intelligence research series found that 63% of businesses still using paper payments face check fraud, while 37% said instant payments can strengthen security. The data did not include the reports’ publication dates, transaction values or losses. The findings suggest banks seeking to accelerate adoption must address business concerns through identity verification, transaction monitoring and risk education.