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75% of FIs to Adopt ‘FedNow’ Instant Payments; 50% to Use RTP

Wespay — a payments association many credit unions are members of — recently published results of a member survey revealing service preferences, intended timelines, and support requirements for adoption of instant payments technology, infrastructure, and service offerings within the upcoming FedNow service being launched by the Federal Reserve in July.

This comes after Wespay CEO Bill Schoch delivered a presentation during a California and Nevada Credit Union Leagues-hosted webinar this past spring for credit union CEOs on the FedNow service launching this July (view presentation slides here).

Additionally, Federal Reserve Vice President of Customer Relations for Financial Services Joni Hopkins delivered a presentation to credit union professionals from across the nation in early June on the Fed’s upcoming FedNow service during a Credit Union National Association (CUNA)-hosted webinar, entitled Key Considerations as Your Credit Union Plans its FedNowSM Service Strategy.

Wespay’s Instant Payments Survey Results
Wespay’s survey shows more than 75 percent of 120 financial institution respondents intend to adopt the FedNow service, while 50 percent plan to utilize the RTP (Real-Time Payment) Service.

While most respondents expect to adopt the Instant Payments service, the timeframe remains uncertain. Approximately 43 percent of respondents have yet to finalize a target date for going live, and many of the 19 percent who initially planned to implement Instant Payments this year are waiting for critical prerequisites such as technical capabilities from core providers.

“Wespay members are conducting their due diligence and are engaging with technology and service providers to prepare for Instant Payments adoption,” Schoch said. “The planned adoption of both FedNow and RTP services demonstrates the high-interest in Instant Payments and the competitive operating environment that is emerging.”

The survey responses also indicate four areas where additional financial institution-member support is needed:

  • Fraud mitigation: Fraud is members’ top concern.
  • Operational and risk management sound practices: Wespay members are seeking access to services and resources to control their operating environment more effectively.
  • Use-case definition: Wespay members are exploring potential use cases for Instant Payments and a comparison with legacy payment channels.
  • Staff education: Wespay members are seeking access to training, expertise, and tools to operate with confidence.

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