Why FedNow, Now?

The Federal Reserve’s FedNow^® Service is the new instant payments rail that will revolutionize the way your members make payments.

Now, if you’re wondering whether it’s the right time to implement the FedNow Service, ask yourself one simple question: Would your members rather get paid now OR would they rather get paid later?

If they’re like most people, they’d choose to get paid now. In fact, 70% of consumers say that having faster payment options from their financial institution is an important driver of satisfaction.

Large banks have been performing instant payments for a couple of years, and both consumers and businesses love the convenience. With big players like the U.S. Treasury opting to use the FedNow Service as its payment rail for tax refunds and Social Security payments, momentum is set to surge. It will change the way the world operates – and your members’ expectations – overnight.

Financial and business arenas are rapidly transitioning to 24/7/365 business operations. Becoming part of the evolution now will ensure you're prepared when your members expect it.

Connecting to instant payments

You’ll want a partner that makes it simple for your credit union to connect to the FedNow^® Service (and RTP^® Network, if that is part of your plan). 

Rather than integrate your core, online banking, and mobile banking to multiple, system specific service providers, it makes sense to choose a vendor-agnostic solution – meaning, all your systems leverage an open API to connect directly, in REAL TIME!

This type of connection enables functionality such as real-time funds verification and posting, saving your credit union countless hours on reporting and reconciling transactions. 

Test the waters or dive right in?

The next decisions to make are whether you will receive and send, or simply receive, transactions and where those transactions will settle.

It works to your advantage to find a provider that offers your credit union an end-to-end solution, including settlement, receiving, and sending of transactions. Catalyst can meet your instant payment needs.

Settlement:

Let's talk Settlement first. Catalyst makes things easy. If your credit union connects to the FedNow Service through Catalyst, you can use our Fed account. AND, we have created a new sub-account for you, just for FedNow transactions, with easy-to-understand reports. On top of that, Catalyst’s settlement window closes 5-1/2 hours later than the Fed, so you can maximize interest earnings and financial performance.

Receive:

Next up is Receive. Catalyst enables credit unions to receive FedNow transactions. If your credit union isn't set up to receive FedNow payments, your members won't be able to receive them either. Depending on your strategic plan, your credit union may choose to jump right into receiving and sending transactions, or simply start as Receive-only, with settlement. Regardless of the route you choose, technical setup for receiving is flexible and highly adaptive, and our dedicated team of experts will consult you through the entire process.

Send:

Lastly, there’s Send. Catalyst enables credit unions to initiate and send FedNow payments. With options to send via mobile, online banking or at a local branch, our solution helps you meet your members where they are.

As a member of original group of participants in the FedNow Service pilot program and the first financial institution to go live in the Federal Reserve’s 11^th district, Catalyst is a “FedNow Pioneer.” For us, this achievement has been seven years in the making. Our strategic acquisition of Aptys Solutions positioned Catalyst and credit unions for success in the new world of instant payments. As the leading fintech provider of digital payment solutions, Aptys processes billions of transactions annually for more than 5,500 financial institutions across the country.

So whether you test the waters or dive right in with the entire suite of Catalyst solutions, our team of expert advisors is here to guide you every step of the way. Take the next step and contact a Catalyst expert today!