Welcome to NEACH's Innovating Payments Top 3 News Headlines for the week of May 14, 2023. FedNowSM is gearing up for implementation, with Jack Henry making news that it is operationally ready for the launch of the service. In addition, the FedNow team released an illustration to help FIs in better understanding the user experience, and Cointelegraph reports that Metal Blockchain will connect to FedNow.
Read on to learn more.
1. As FedNow Gears up for Launch, Processors Ready Smaller Clients (Digital Transactions)
Jack Henry & Associates Inc., one of the earliest participants in the Federal Reserve's nascent FedNow real-time payments platform, said early Monday it is "operationally ready" to support the service when it launches commercially in July.
The Monett, Mo.-based processor said more than 20 client institutions are set to connect to an "early adopter" program for FedNow, including Bryant Bank in Alabama and HawaiiUSA Federal Credit Union. The latter institution was a participant in the Fed's pilot program for FedNow. (Read more.)
2. FedNowSM Service illustration video (FedNow Explorer)
The Federal Reserve has released a video that provides an example of how financial institutions can enable their customers to access instant payments through the FedNow Service. In this video, you'll see a business customer immediately pay a supplier using their financial institution's online interface. You'll also get a look at what's happening between the sender's and receiver's financial institutions when a payment is made over the service. (View more.)
3. Federal Reserve's FedNow will connect with Metal Blockchain (Cointelegraph)
The Federal Reserve's forthcoming instant payment service FedNow will be connected to Metal Blockchain, according to a May 11 announcement from the Metal Blockchain team. The announcement said that the integration will allow Metal users to instantly convert funds to stablecoin and back again using FedNow's "send/receive" function. (Read more.)
How's your FedNow planning coming along? Reach out to NEACH for support in understanding, navigating, and preparing for implementation of this new instant payments service.
Check back soon for our next issue, highlighting the industry's most pressing and need-to-know developments. Until then, visit us online at Innovating Payments.
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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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