Trends & Research

Trends & Research

Access the power of data and objective insight. Data from various sources, including NEACH surveys and member interviews, is compiled and made available as white papers, case studies, articles, benchmarking, and industry reports to provide a snapshot of both the current and future payments landscape. 

Published on Friday, December 15, 2023

December 2023 Innovating Payments Executive Summary — Fed Announces Its 2024 Fee Schedule and Payment System Enhancements

Welcome to the December issue of Innovating Payments Executive Summary. In this issue, the Fed announced its financial services fees and payment system enhancements for 2024, which go into effect Jan. 2. Also in the news, The Clearing House reported that Keith Melton has joined the company as Senior Vice President and RTP®Strategic Program Manager. Speaking of RTP, Navy Federal Credit Union, the largest credit union in the world, set a new record among RTP financial institution participants, receiving over $2.7 million of real-time deposits on its first full day on the RTP network. 

Also, in this month's issue, the European Payments Council and SWIFT announced they have brought 24/7 payments to Europe. Meanwhile, Venmo will no longer be a payment option on Amazon as of  Jan. 10, 2024. And a new report suggests that artificial intelligence (AI) may become part of the payments landscape in the future.

For more on these and other stories, read on.

The Federal Reserve

Fed Announces Financial Services Fees and Payment System Enhancements

On Nov. 17, 2023, the Federal Reserve announced its 2024 financial services fees and payment system enhancements.


Upcoming enhancements by the Fed include but are not limited to:

  • Continuing to simplify technology platforms and provide richer data and flexibility  while facilitating the Fedwire®Funds Service's Mar. 10, 2025, implementation of the ISO® 20022 format
  • Enhancing its range of services that can assist its customers in detecting anomalous payment patterns
  • Expanding its use of application programming interfaces (APIs)
  • Continuing to maximize the accessibility of instant payments by building on the successful July launch of the FedNow® Service


Due to these enhancements and generally higher operating costs, the Fed will slightly increase the prices of some services and leave others unchanged in 2024. As noted in the announcement, “The impact on your financial institution will depend on your product mix and volume.” All price changes will go into effect Jan. 2, 2024.

Pricing that will remain unchanged includes:

  • FedNow Service
  • Fedwire Securities Service 

Services affected by pricing increases include:

  • Accounting Services
  • Check Services
  • FedACH® Services
  • FedCash Services
  • FedLine® Solutions
  • FedWire Funds Service
  • National Settlement Service

To learn more about these enhancements and pricing increases, visit

The Clearing House

The Clearing House (TCH) announced on Nov. 13, 2023, that Keith Melton has joined the company as Senior Vice President and RTP® Strategic Program Manager, where he will drive the execution of the next phase of TCH's instant payments strategy, in particular, the growth of the RTP network and strengthening its position as the instant payments leader in the United States, according to a news release.

In his new role, Melton will work closely with TCH clients and the industry, driving the delivery of a program of work to accelerate the RTP network's impact across multiple use cases in support of its ongoing growth. The RTP network offers immediate confirmation of more than 23 million monthly payments. 

“I’m happy to bring my experience with innovation, product management and execution to The Clearing House to focus on opportunities to continue to grow the RTP network ecosystem, including many opportunities with partners and technology providers,” Melton told TCH. “Joining the TCH team is an exciting opportunity.” 

Melton, who has over 20 years of experience in the industry, joins TCH from the Federal Reserve Bank of Atlanta—Federal Reserve Financial Services (FRFS), where he was Senior Vice President and Head of Product Management for all payment services across the Federal Reserve System.


Navy Federal Credit Union Joins RTP® Network, Providing Members Convenient Transactions 24/7

Navy Federal Credit Union, the largest credit union in the world, received over $2.7 million of real-time deposits during its first full day on the RTP network, the instant payments system operated by The Clearing House, setting a new record among RTP financial institution participants, according to a news release

"This is an important step towards the future of banking and is meaningful to our membership as it provides another way for them to manage their finances in real-time," Pete Amstutz, Senior Vice President, Savings and Membership at Navy Federal Credit Union, told TCH. "Our focus is providing outstanding member service, and through Real-time Payments, we strive to continue meeting members' needs for speed, transparency and security when it comes to moving their money.”

The move aligns with Navy Federal's digital strategy and speaks to the growing importance of real-time payments in today's digital economy.

Faster and Instant Payments

EPC and SWIFT Bring 24/7 Payments to Europe

Also making headlines, cross-border payments to Europe can now reach their destination in seconds thanks to the European Payment Council’s (EPC) One-Leg Out Instant Credit Transfer (OCT Inst) payment scheme, powered by Swift, that went live Nov. 28. “The launch of the OCT Inst scheme marks a significant development for the EPC, as it is the EPC’s first venture outside of the geographical scope of the Single Euro Payments Area (SEPA),” reported an EPC news release.

It went on to say:


The OCTG Inst scheme is a cross-currency payment scheme to support processing incoming and outgoing international instant account-to-account-based credit transfers. It is distinct from other EPC payment schemes, as it is the first EPC scheme that exclusively covers the Euro Leg of international instant credit transfers entering or leaving the geographical scope of SEPA. 


“The new One-Leg Out Instant Credit Transfer (OCT Inst) scheme is the first non-SEPA scheme delivered by the EPC, targeting international (instant) account-to-account payment transactions,” Giorgio Andreoli, Director General of the EPC said in the release. “The EPC is proud to release at the right point in time an innovative scheme with a strong market fit, as we believe that a multilateral scheme approach could be a game changer for international instant payments.” 


Meanwhile, Venmo will no longer be a payment option on Amazon.

“Due to recent changes, Venmo can no longer be added as a payment method,” Venmo said on its website Thursday (Dec. 7). “Venmo will remain available to users who currently have it enabled in their Amazon wallet until 01/10/24.” 

“Venmo and Amazon have agreed to disable Venmo as an option to pay on Amazon at this time,” PYMNTS reported. “Customers can continue to add their Venmo debit card or credit card to their Amazon wallet to pay on Amazon. We have a strong relationship with Amazon and look forward to continuing to build on it.”

Both companies declined to comment on why the partnership ended.

Artificial Intelligence (AI) in Payments

AI-Enabled Payments Enhance Customer Options Report

The AI-Enabled Payments Enhance Customer Options Report, released by PYMNTS and ACI Worldwide, suggests that “the introduction of artificial intelligence (AI) into payments is the next step in the industry’s evolution and is affecting how consumers pay for goods and services.” 

Key findings from the report include:

  • Consumers are increasingly familiar with AI and show considerable interest in AI-enabled experiences.
  • Consumer subgroups have specific goals when choosing payment options and would be open to AI-enabled experiences that allow companies to respond to their needs.
  • Younger customers are hesitant to tap credit, and AI could be a tool to change this trend.

The study concludes:


As different market segments make inroads in incorporating AI into their payment processes, companies that embrace this new technology are impacting the experience of their customers, which drives consumers’ interest in the use of AI when making payments . . . All generational groups generally welcome AI-enabled shopping and banking experiences, with younger consumers more open to adding AI to these services. Consumer subgroups have distinct goals and preferences around using AI in their banking and shopping experiences, and service providers must tailor their features to appeal effectively to a wide range of consumers.


For more on the study, click here.


In other news, Jack Henry & Associates announced that Stacey Zengel, Senior Vice President and President of Jack Henry Bank Solutions, will retire on Jun. 30, 2024.

“Zengel started with the company in 1999 and, in 2004, became Jack Henry’s first General Manager for Imaging Solutions, which consisted of check imaging and enterprise content management-related products,” according to a company news release. “In 2013, he became General Manager of Jack Henry's Outlink Processing Services™ where he was responsible for operational outsourcing for banks and credit unions. He was promoted to President of Jack Henry Bank Solutions in 2015 and became an executive officer at the company in 2018.”

"Stacey has consistently demonstrated an unwavering commitment to helping our community and regional financial institution clients achieve success throughout his long and distinguished time at Jack Henry," President and Chief Operating Officer Greg Adelson noted in the release. "Stacey exemplifies our core values of leadership by providing inspiration and guidance through a collaborative approach. He will leave Jack Henry with a long list of outstanding achievements and colleagues that consider him a friend. I am very grateful for the opportunity to work with him and want to personally thank him for his support and friendship through the years."  


Check out the Dec. 6 episode of the Wrestling Payments podcast, Wrestling with Third-Party Senders. In it, Wrestling Payments host Joe Casali and guests Dennis Walker and Stephen Dillon engage in a candid conversation about the complex world of third-party sender relationships in banking and ACH payments. Walker and Dillon share valuable insights and practical wisdom that can help financial institutions navigate this intricate landscape effectively.




AUTHOR: Joe Casali, AAP, NCP
Executive Vice President

As the EVP of Payments Innovation for NEACH, Joe focuses on exploring innovative solutions and technologies that will help position members for success, both now and in the future. Connect with Joe to read more of his blogs, articles, and posts.

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