It has been eleven days after the launch of FedNow, and already users are hailing its success.
Fintech company Alacriti was one of the first to complete FedNow service certification, allowing banks and credit unions to use its payment hub for live transactions.
FedNow, the Federal Reserve’s instant payment system, went live on July 20, with 35 banks and credit unions signed up.
Banks and credit unions can use the system to instantly transfer money, so individuals can receive paychecks and immediately use them on the same day, and businesses can avoid processing delays.
Veridian Credit Union, First Internet Bank, Avidia Bank and Consumers Credit Union are working with Alacriti’s centralized payment platform, Orbipay Payments Hub, to run live transactions on FedNow.
Mark Majeske, senior vice president of faster payments at the fintech firm, said: “Alacriti has worked very hard to be among the first fintechs to be certified with the FedNow Service, providing ISO 20022 compliance and ‘always-on’ service. We participated in the Fed’s pilot program, ensuring that we were more than ready for the live launch.”
Nicole Lorch, president and chief operating officer of First Internet Bank, said: “Our partnership with Alacriti for real-time payments enables us to help our customers improve their cash flow control and certainty.”
Companies across the financial services industry are making similar moves to deliver instant payments. Cross River Bank has partnered with Plaid to produce Plaid Transfer, giving users access to multiple payment systems and networks including FedNow.
John Anderson, head of payments at Plaid, said: “Real-time payments can deliver significant efficiency and cost benefits to businesses and help them deliver amazing new experiences for consumers by delivering money when and where they need it.”
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