The number of businesses using both standard and Same Day ACH grew significantly from 2023 to 2024, a new Federal Reserve report found. 60% said they use standard ACH, up from 48% a year earlier. And 56% reported using Same Day ACH, an increase from 45% in 2023. Additionally, 47% of businesses said they encourage using ACH. One study respondent, identified as a “very large diversified service business,” told researchers, “We are using Same Day ACH more—it’s a good value for the price.” Still, even as both forms of ACH continue to gain usage, checks use in fact rose from 68% to 73%. It was highest among small (83%) and very small (78%) firms. “One key takeaway is that checks are unlikely to be disappear completely in the near future—a trend to monitor,” researchers noted. “Nacha’s own figures show that ACH volume is rising,” said Michael Herd, Nacha Executive Vice President, ACH Network Administration. “Given this widespread use and acceptance of ACH, plus the increasing amount of check fraud, the industry needs to focus on why businesses of any size are still writing and receiving checks.” When it comes to pain points for business payments, high costs/fees was the top issue cited at 48%. Speed was tied for a distant second with security issues, cited by 32%.
Loans to nonbank entities like buyout firms and private credit outfits topped $1 Trillion, up 20% from last year raising systemic risk
Lending to nonbank entities like buyout firms and private credit outfits has topped $1 trillion. This trend is happening amid concern by regulators that the connections between banks and their nonbank counterparts could present a systemic risk. The report, citing data from Fitch Ratings, said loans from banks to nonbank financial institutions (NBFIs) totaled roughly $1.2 trillion at the end of March, up 20% from last year and driven by lending to private credit firms. That data shows that, since the pandemic’s start, bank loans to NBFIs have gone from approximately $600 million at the end of 2019 to over $1 trillion when this year began, as businesses increasingly seek private credit funding. However, borrowers who look to private credit and direct lenders for funding tend to be riskier and more levered. As some of these loans are made with funds borrowed from banks, there are concerns that bad credit could infect the wider financial system. Another report from Fitch saying that a downturn in the private credit sector is “unlikely to have widescale financial stability implications for the largest banks,” at least in the short term. Still, Fitch said it’s hard to fully assess the risks and that “second-order effects are more difficult to quantify.”
Capital One is among Top 10 for GenAI patent filings alongside Google, Microsoft, IBM and Nvidia
Google has overtaken IBM to become the leader in generative AI-related patents and also leads in the emerging area of agentic AI, according to data from IFI Claims shared first with Axios. Patent filings, though they’re not a direct proxy for innovation, indicate areas of keen research interest — and generative AI patent applications in the U.S. have risen by more than 50% in recent months. “The surge in applications for AI related patents is a sign companies are actively seeking protection for their AI technologies, leading to an increase in grants as well,” IFI Claims spokesperson Lily Iacurci said. In the patents-for-agents U.S. rankings, Google and Nvidia top the list, followed by IBM, Intel and Microsoft. Globally, Google and Nvidia also led the agentic patents list, but three Chinese universities also make the top 10, highlighting China’s place as the chief U.S. rival in the field. In global rankings for generative AI, Google was also the leader — but six of the top 10 global spots were held by Chinese companies or universities. Microsoft was No. 3, with Nvidia and IBM also in the top 10. IFI Claims identified only a single patent tied to China’s DeepSeek, one for a method of constructing training data. In U.S. rankings for generative AI, Google and Microsoft topped the list of U.S. patent applications, surpassing previous leader IBM. Also in the top 10 were Nvidia, Capital One, Samsung, Adobe, Intel and Qualcomm. Many of the same names cropped up in the list of overall AI-related U.S. patent applications, with Google in the top spot, followed by Microsoft, IBM, Samsung and Capital One. Globally, Google topped the list, followed by Huawei and Samsung. Neither Meta nor OpenAI ranked in the top 10, though OpenAI has stepped up its patent efforts over the past year, IFI’s analysis found. Overall, the number of U.S. patent applications related to generative AI surged 56% last year, to 51,487. Granted patents in the U.S. also rose 32%.
First Internet Bank offers “high-fidelity ACH” wherein the bank sends out test messages with each large payments file to ensure when those transactions are being received by the Federal Reserve
Standard ACH payments can still take up to four days. First Internet Bank is stepping up to fill that breach with its “high-fidelity ACH” system, wherein the bank sends out test messages with each large payments file (like a “canary in a coal mine”) to ensure when those transactions are being received by the Federal Reserve. In turn, this gives business customers a bird’s-eye view to track those transactions via an application dashboard. Hence, the bank’s business customers, such as Check and Ramp — which are piloting the service — can see exactly when payments clear, and reliably guarantee that their end customers (payroll recipients) are getting their money on time. First Internet Bank has been working with Increase for more than two years in developing and rolling out an ACH system that helps business customers continue to reliably deliver their own payments on-time while offering a clear view of how the payments are progressing on an Increase-developed application and when they hit at the receiving depository financial institution, or RDFI. There have been “a series of improvements,” according to Lorch, as the bank and the Bend, a fintech startup have refined their approach and the technology. For his part, CEO and founder of First Internet Bank’s technology partner Increase, Darragh Buckley, sees his company’s facilitation of ACH payments as more of a means of building improvement on the existing system, rather than trying to rip out the entire network and try to start anew. “No one really wants excitement in their payroll,” said Buckley, who previously was employee No. 1 at digital payments giant Stripe. “We want it all to progress boringly [so that] the payroll client knows they have done their job [and] can sleep better at night.”
Fiserv Clover debuts Checkless Payments which allows enrolled diners to leave at will; diners initiate experience by a Live Check sent via SMS message
Clover is continuing to actualize its commitment to trailblazing innovation in the industry through a unique new collaboration with Union Square Hospitality Group (USHG). The two have teamed up to launch Checkless Payments, an alternative payment solution that empowers diners to pay for their meal without the disruption of asking and waiting for the bill, ensuring a memorable, friction-free dining experience. Diners will have the option to enroll in Checkless Payments. This pre-dining experience not only sets up the functionality for Checkless Payments by enrolling the customer but also provides an opportunity to highlight any additional offerings. From showcasing menu items to recent events, this enrollment process enhances the overall dining experience even before they arrive. Seamless Enrollment & Setup: Diners are guided through a simple enrollment process, where they can securely enter their card information and select gratuity preferences. Branded Diner Engagement: Operators have full control over the content shared during enrollment. This is a prime opportunity to showcase the restaurant’s personality—from custom-branded menus and special messages to upcoming events, private dining options, and seasonal highlights. Diners can also provide notes or special occasions, and even explore the restaurant’s social media or get directions, all before stepping through the door. Marketing & Personalization Touchpoint: This pre-dining interaction not only enhances the diner experience but also serves as a powerful marketing tool.
Betterment to integrate portfolio management tech with its custodial platform to enable direct indexing, tax optimization, expanded single stock support and personalized investing capabilities to RIAs
Betterment, the largest independent digital investment advisor in the U.S., announced the acquisition of Rowboat Advisors, a leading provider of portfolio management software with advanced capabilities in direct indexing, tax optimization, and personalized investing. The acquisition strengthens Betterment’s technology platform and accelerates its roadmap for delivering sophisticated tools to RIAs through Betterment Advisor Solutions. Rowboat Advisors developed a suite of portfolio optimization software purpose-built for investors seeking greater control, transparency, and tax efficiency. Its solutions will be integrated into Betterment Advisor Solutions, the company’s all-in-one custodial platform for modern RIAs, beginning in the second half of 2025. The deal reflects Betterment’s strategic focus on expanding product capabilities for advisor clients and follows a series of product launches earlier this year, including Solo 401(k) plans and securities-backed lines of credit (SBLOCs). Following the acquisition, Kourtidis will join Betterment’s engineering leadership team as Vice President of Portfolio Management, reporting to Chief Technology Officer John Mileham. Advisors can expect the following portfolio management enhancements this year, as well as direct indexing in 2026:
- Expanded single stock support: Manage portfolios across a wider range of securities, building on Betterment’s growing ETF and mutual fund universe.
- Tools for more control and transparency: Run sophisticated simulations and use critical data to trade portfolios.
- Powerful automation and tax management: Optimize portfolios with enhanced rebalancing, tax-loss harvesting, tax-smart portfolio transitions, asset location and intelligent withdrawals.
UK’s new BNPL rules to require upfront checks to assess borrower’s repayment ability, confer the right to complain to the Financial Ombudsman, and shifts the oversight to the FCA bringing BNPL in line with other credit products
After years of wrangling, the UK Government is finally introducing new rules to clamp down on what it describes as the ‘wild west’ of buy now, pay later lending. Under the changes, millions of BNPL shoppers will gain stronger rights and clearer information as the Government reforms the 50-year-old Consumer Credit Act to better reflect modern borowing trends. That means upfront checks to make sure people can repay what they borrow, fairer and faster access to refunds, and the right to complain to the Financial Ombudsman — bringing BNPL in line with other credit products. The Government says outdated and confusing rules will be removed, with oversight shifting to the FCA. The legislative shift comes as a report by the FCA showed that one in ten people were unable to pay essential bills while millions more Brits were using buy now pay later products over the last three years. New figures from Money Wellness reveal a 68% increase in the number of people seeking help with BNPL debt in the past year, highlighting the growing strain the sector is placing on household finances. Sebrina McCullough, director of external relations at Money Wellness, says: “We’ve seen a significant rise in people struggling with Buy Now Pay Later debt, often because they’ve used it to plug gaps in everyday budgets. For many, it’s become a way to spread the cost of essentials like food shopping, rather than to cover large expenses. The legislation bringing BNPL into regulation will be laid in Parliament on 19 May.
364-day bridge loans are funding acquisitions in a ‘sponsor-backed LBO’ style lowering the holding risk, but without requiring selling of bonds or leveraged loans
Junk-rated companies and private equity firms have lined up about $17 billion of debt recently for purchases of everything from power plants to a chain of gas stations. But they are using an unusual tool for that financing: the 364-day bridge loan. Wall Street firms look to sell that debt to investors but often agree to provide that funding even if markets are closed, and they have to hang onto the risk for years. “It is very rare to see this structure in a sponsor-backed LBO,” said Peter Toal, Barclays’ global head of fixed income, referring to 364-day loans. “In times of volatility, it’s an easier structure for the banks to commit to, no question about it.” After junk-bond and leveraged-loan markets effectively closed last month in the wake of President Donald Trump’s tariff announcements, banks were stuck holding onto billions of dollars of debt they couldn’t sell to investors. Hanging onto that debt can translate to hits to earnings for Wall Street firms. Now, borrowers are getting 364-day bridges that are effectively lines of credit for their acquisitions, which they can tap if they can’t sell bonds or leveraged loans before they close their acquisition. A significant number of buyouts financed in the leveraged loan market feature ratings in the B tier. Most of the companies getting 364-day bridge loans now, though, have grades in the BB tier, and sometimes their secured debt carries investment-grade ratings. Herc, for one, has an overall high-yield profile with a Ba2 rating from Moody’s Investors Service and an equivalent BB from S&P Global Ratings while its $750 million loan earned the lowest rung of investment-grade with a Baa3 rating by Moody’s and BBB- by S&P. At NRG, the firm’s senior-secured debt is rated BBB- by Fitch Ratings and S&P, the company said in an investor presentation detailing its acquisition plans this week.
Citi’s Token Services enable real-time cross-border payments and trade settlement through clients’ existing methods without requiring them to hold tokens via API or online portal
Citi’s treasury and trade solutions customers were asking for multinational cash management and trade services available 24/7 and that’s where Citi Token Services was born. “The pain point was our clients wanted 24/7, always on, liquidity and payments,” said Ryan Rugg, Citi’s global head of digital assets, treasury and trade solutions. Ambrish Bansal, Citi’s global head of liquidity and cash concentration solutions, liquidity management services in the bank’s treasury and trade solutions unit, said the initiative stemmed from clients’ requests. “It’s really important for us to ensure that our clients can leverage cutting-edge technologies and new developments and move their treasury management into the real-time world,” Bansal said. “The whole idea behind Citi Token Services was born out of this pressing need by our clients to ensure that their money can move around the global ecosystem in as [close to] real time as possible.” The bank uses a private permissioned distributed ledger and a distributed database with embedded business logic to enable a range of services from intraday lending, cross-border payments and conditional transfer of funds to supply chain financing, trade settlements and fractional ownership to identity verification and know-your-customer compliance. Citi Token Services adheres to the ERC-20 technical standard — a community-created framework for creating smart contract-enabled fungible tokens on the ethereum blockchain. The bank owns and manages all the blockchain technology infrastructure it’s using for its token services, which will be integrated into the bank’s global network. Clients will be able to access Citi Token Services through its CitiDirect online portal or API connectivity. Rugg said multinational companies with hundreds, if not thousands, of accounts with Citi and other banks can use the program to manage liquidity and payments across the globe. Before, they would have to forecast and leave money in different branches as well as keep track of cut-off times and holidays around the world when money can’t be moved.
Agentic AI could change customer acquisition channels and prompt retailers to shift ad dollars from pay-per-click campaigns, consolidating search, selection and checkout into the same dialogue
“What consumers really want is for commerce to happen immediately,” Scott Hendrickson, chief revenue officer of the agentic AI merchant network firmly, said. Hendrickson and his co-founder Kumar Senthil argue that the evolution from search to suggestion to settlement is the next logical step in eCommerce. It’s agentic AI at its most promising. That subtle shift in search behavior is forcing merchants to rethink where, and how, they meet shoppers. If an AI agent can compress browsing, selection and checkout into the same dialogue, retailers that sit outside the conversation risk ceding both visibility and sales. For Hendrickson, the technical plumbing enables a strategic shift in how merchants think about customer acquisition. “Right now, the search experience is you search for a product and then you immediately leave,” he told. “With the new LLMs you might start your research, refine what you’re looking for, and make the purchase in the same place. You don’t have to leave the site to complete that full funnel anymore, and that’s what’s ultimately going to drive better performance.” Consolidating the funnel could also upend traditional advertising economics. If the agent closes a sale within the first interaction, retailers may decide to shift dollars from pay-per-click campaigns toward deeper catalog and logistics integrations. Conversely, platforms that mediate the sale, such as chatbots, voice assistants or augmented-reality overlays, gain new leverage to capture a slice of the transaction rather than bill for impressions. That model works only if the agent can reliably see a broad, up-to-date range of products. Lifestyle labels in particular worry that ceding the front-end experience to an agentic AI could erode brand storytelling. Hendrickson counters that many customers now encounter products through a third-party channel anyway from an influencer’s livestream, a buy button inside Instagram, or a same-day-delivery marketplace. “We’re not eliminating brand,” he said. “We’re shortening the distance between intent and conversion.”