Payment systems are evolving at an exciting pace and in a way that will help shape the future of financial services in the U.S. Businesses and consumers have been looking for faster, more efficient payment options for years, and for good reason. For consumers, the ability to send a payment any time of the day or night, 365 days a year and verify that it’s received instantly can help simplify household finances and provide peace of mind. For businesses, the ability to settle invoices immediately can help ease vital cash flow needs. While real-time payments already exist in the U.S. today, they’re used primarily by large banks for only 1.4% of all U.S. transactions. Now we’re on the doorstep of making instant payments more accessible and expanding that ease and simplicity to businesses of all sizes and everyday consumers across the U.S.
Veridian Credit Union is Iowa’s second-largest credit union. We were founded in Waterloo, Iowa, in 1934. Today, we’re owned by the 325,000 members we serve with $7 billion in assets and 30 branches across Iowa and eastern Nebraska. Our mission is to partner with our members to create successful financial futures. Our growth strategy is focused on both our branch network and digital delivery—because we know people want instant, digital access to financial products and services as well as the option to talk face-to-face with a person when needed. Instant payments are in perfect alignment with our mission, our growth strategy and the future of financial services. That’s why we chose to complete formal testing and receive certification to become an early adopter of the instant payments infrastructure offered by FedNow.
Getting certified for FedNow
We first began exploring Veridian CU’s readiness for instant payments in 2020. Those conversations solidified our commitment to offer both real-time payments through The Clearing House and instant payments through FedNow. We joined the FedNow pilot program later that year and worked with Alacriti, our payments processing partner and a CUES Supplier member, to build our connection to FedNow’s infrastructure, designate users and verify test cases. In June of this year, we learned that we had earned FedNow certification.
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