Americans Struggle to Pay Essential Bills Amid Economic Uncertainty

A survey by InvoiceCloud found that 56% of Americans struggle to pay essential bills on time, with 28% living paycheck to paycheck. The increased cost of living and slowing job market have put pressure on consumer wallets. Many have to choose between essential bills and discretionary spending, with only 20% having leftover funds under $100. The survey highlights the importance of digital payment tools to support vulnerable constituents and manage expenses efficiently.

A recent survey by InvoiceCloud revealed that 56% of Americans are struggling to pay essential bills on time, with 28% living paycheck to paycheck. The increasing cost of living and a slowing job market have exacerbated financial pressures, forcing many to choose between essential bills and discretionary spending. Only 20% have leftover funds under $100, highlighting the need for digital payment tools to support vulnerable constituents and manage expenses efficiently.

The survey underscores the importance of financial innovation in addressing these challenges. Digital payment tools, such as blockchain-based platforms, can offer near-instantaneous funding capabilities and enhanced trust and accountability. For instance, OCBC Bank recently announced a US$1 billion digital US commercial paper (USCP) programme using blockchain, which allows for real-time funding and settlement [1]. This move not only bolsters liquidity resilience but also demonstrates the potential of blockchain technology in addressing financial vulnerabilities.

The digital USCP programme, facilitated by JPMorgan’s Digital Debt Service application and built on the multi-asset tokenisation platform Kinexys Digital Assets, exemplifies how financial institutions are leveraging technology to improve efficiency and reduce costs. By tokenising securities and funds on the blockchain, OCBC can receive funds within minutes, offering a more responsive and efficient funding solution.

In addition to blockchain, the global adoption of ISO 20022, a new financial messaging standard for global payments, could also positively impact digital payment tools. According to a crypto pundit, the ISO 20022 global adoption by November could lead to increased adoption of XRP, which serves as the bridge currency in Ripple’s payment services [2]. This development could catalyze higher prices for XRP and boost its adoption, further enhancing the utility of digital payment tools.

The survey by InvoiceCloud and the innovations in digital payment tools underscore the need for financial professionals to stay informed about emerging technologies and their potential impact on consumer financial well-being. As digital payment tools continue to evolve, they hold promise for supporting vulnerable constituents and managing expenses more efficiently.

References:
[1] https://www.businesstimes.com.sg/companies-markets/ocbc-establishes-us1-billion-digital-us-commercial-paper-programme-based-blockchain
[2] https://bitcoinist.com/pundit-warns-xrp-investors/