With FedNow, every depository institution can offer real-time payments

The launch of FedNow is a milestone in America’s journey towards payments modernization, enabling another option for digital payments 24 hours a day, every day of the year. While faster real-time payments have been available through The Clearing House’s rails and other popular solutions for faster payments like Zelle, many credit unions have been slower to adopt as they carefully weigh the risks and advantages. That’s a smart choice as it’s important to approach all payments innovations with a fully informed strategy.

Today, many credit unions are thinking through how or when to adopt real-time payments. RTP, Whereas RTP, a real-time payment protocol, is limited to members of The Clearing House, FedNow is accessible to all depository institutions in the United States with the potential to eventually reach every individual and business.

With FedNow, credit unions have an opportunity to delve into real-time payments to meet consumer demand and compete for new members. However, they must continue their strategic approach, ensuring they have the proper guardrails in place. In this article, I share six key considerations on the advantages of real-time payments for credit unions and the risks, empowering them to make informed decisions.

 

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