The U.S. payments landscape is at a pivotal crossroads. Over the last decade, significant strides have been made with instant payment systems like The Clearing House’s Real-Time Payments (RTP) network and the Federal Reserve’s FedNow Service. Despite these advancements, the majority of U.S. transactions still rely on traditional methods, like checks and batch-processed card payments. With 70% of payments processed this way, according to the Federal Reserve’s Payments Study, it’s clear the U.S. lags behind other nations in adopting real-time payments.
Compare this to Brazil, where Pix, the instant payments system launched in 2020, has revolutionized the country’s financial ecosystem. In In December 2024 alone, Pix processed over 6 billion transactions, according to the Central Bank of Brazil — 45% more than credit and debit cards combined. Meanwhile, despite launching instant payment rails seven years ago, the U.S. processes a fraction of that monthly. This disparity underscores the need for fresh strategies to accelerate real-time payment adoption in the U.S.
The answer lies in leveraging familiar technologies: QR codes and near-field communication (NFC). These tools have the potential to transform how Americans transact, moving the country away from batch-based payments to a real-time, account-to-account (A2A) payment ecosystem.
According to the Federal Reserve’s 2024 Diary of Consumer Payment Choice, credit and debit cards account for 62% of U.S. payment activity. Businesses rely on these networks to stay competitive, but the cost is steep: transaction fees ranging from 2% to 3% are often passed on to consumers. In 2023, families paid an average of $1,102 in swipe fees, according to the Merchant Payments Coalition.
Despite these fees, consumers remain loyal to credit cards, lured by rewards programs and the security of transaction dispute options. Any new payment method must offer comparable convenience, speed and reliability. A2A payments can be as accessible and frictionless as card-based transactions. That’s where QR codes and NFC come into play.
QR codes are now ubiquitous, appearing on menus, ads and bills, but they’re typically used for information-sharing, not payments. Payment QR codes, however, are a game changer. These codes contain all the details needed to execute a secure, push-based transaction. Consumers can scan the code with their bank’s mobile phone to review the transaction details and authorize the payment.
In countries like Brazil, payment QR codes are standardized to ensure compatibility across financial institutions. This interoperability allows any business to accept payments regardless of the payer’s bank, fostering widespread adoption. In the U.S., the Accredited Standards Committee X9 is developing a similar standard, paving the way for seamless QR code payments.
Apple’s decision to open its NFC capabilities to payments marks a major shift in payment technology. Soon, any bank or credit union can offer a tap-to-pay experience akin to Apple Pay, enabling consumers to make instant payments directly from their bank account or credit line. While QR codes excel in online or bill payments, NFC shines in scenarios requiring speed, such as in-store checkouts or public transit systems. Together, these technologies provide businesses and consumers with flexible, user-friendly payment options.
The U.S. is primed for a payments transformation. The infrastructure — FedNow and RTP — is already in place. QR codes and NFC are widely recognized and increasingly used by consumers. What’s missing is a standardized framework to unify these technologies. This standard would define how payment QR codes and NFC interactions are formatted, processed and secured, eliminating fragmentation and driving adoption.
A unified standard would benefit all stakeholders, including:
• Consumers. Faster, safer and more convenient payments without sharing sensitive information.
• Merchants. Lower processing fees compared to card payments, boosting profitability.
• Financial institutions. An opportunity to reclaim the payments landscape while enhancing customer engagement.
Instant payments are an opportunity to reshape the U.S. payments ecosystem while lowering costs for businesses and offer secure, fast transactions to consumers.
Business owners are eager to escape high swipe fees, while consumers are open to new technology that’s intuitive and reliable. However, neither group can drive this change alone. Financial institutions must step up, leveraging QR codes and NFC to create healthier payment ecosystems.
The tools are ready. The rails are built. All that remains is for America’s banks and credit unions to take the lead. With a standardized framework for QR codes and NFC, instant payments can finally become mainstream, ushering in a new era of cost-effective, real-time financial transactions.
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