46% of Instant Payment Skeptics Want Bank Info Hidden

Whether it’s employee earnings, Social Security payments, tax refunds, insurance claim payouts, investment distributions or something else, most U.S. consumers now receive some type of disbursement.

The number of people getting those funds quickly is increasing. That’s just fine with 77% of consumers who told PYMNTS Intelligence they would choose instant disbursements if given the option, according to PYMNTS Intelligence’s “Measuring Consumers’ Growing Interest in Instant Payouts” report.

The report, created in collaboration with Ingo Payments, also found instant payouts have skyrocketed in recent years, growing from 4.1% of disbursements in early 2017 to 32% in early 2024. In the last 12 months alone, the use of instant distributions has grown from 29% to 32%. This most recent uptick may be partially explained by the fact instant payments are the only method some organizations offer: 10% of disbursement receivers had no choice but to accept an instant payout.

So, consumers like receiving their distributions instantly and, increasingly, those who issue them prefer to do so instantly. What’s not to like? 

One major barrier to widespread consumer adoption of instant payments centers on security concerns. PYMNTS Intelligence found that among those consumers who are unlikely to accept instant payouts, 48% cite data security issues.

But those concerns are lessening. Seventeen percent fewer consumers voiced security concerns now than did so in 2021. 

To satisfy remaining skeptics, there are steps payment providers can take.

As the data above shows, 46% of consumers who said they are unlikely to use instant payments noted that keeping their bank account information hidden from the sender would provide them with peace of mind, while 40% want their funds to be insured against theft or fraud.

Thirty-two percent, meanwhile, would be put at ease if they were more familiar with the sender. Nearly the same percentage would like to see two-factor authentication or a passkey to login included in the process.

Instant payouts are here to stay. By addressing the remaining security concerns around them, it could help win over the remaining holdouts.