Welcome to the October 2025 Innovating Payments Executive Summary. This month, momentum continues to build around instant payments. The Treasury has expanded its use of the FedNow® Service, enabling federal agencies to deliver real-time payments through the Digital Payout Program. At the same time, the Federal Reserve is working with pilot participants on a network intelligence API, designed to help sending institutions evaluate recipient account data before initiating transactions through the FedNow Service. The Federal Reserve Board also announced that it will extend the operating days of two major payment services, Fedwire® Funds Service and the National Settlement Service (NSS), to include Sundays and weekday holidays, starting no earlier than 2028.
Turning to industry collaboration, the U.S. Faster Payments Council (FPC) and Accredited Standards Committee X9 announced they have formed a strategic alliance to advance faster payments standards. Additionally, the FPC announced that it has released its latest resource: Operational Considerations for Sending Instant Payments Guideline. This publication offers financial institutions practical strategies for implementing send-side functionality securely and efficiently.
Building on these insights, the 2025 AFP Digital Payments Survey, published by the Association for Financial Professionals and sponsored by J.P. Morgan, is now available. This year’s report examines B2B payment trends, the growth of cross-border transactions, and the challenges that are shaping today’s financial landscape.
Looking ahead, NEACH invites you to two can’t-miss events: the 2025 Financial Fraud Forum (Virtual), October 15–16, and the 2025 Future of Payments Symposium, November 3–4 at the Boston Marriott in Burlington. Read on to learn more:
FedNow®
Federal Reserve to Expand FedWire and NSS Operating Days to include Sundays and Weekday Holidays
The Federal Reserve Board announced that it will extend the operating days of two major payment services, Fedwire® Funds Service and the National Settlement Service (NSS), to include Sundays and weekday holidays, according to a news release. The Reserve Banks will carry out this expansion over the next few years, starting no earlier than 2028, to ensure operational and industry readiness.
Currently, both the Fedwire Funds Service and NSS operate Monday through Friday, excluding holidays. After the expansion is implemented, the Reserve Banks will operate both services Sunday through Friday, including weekday holidays. The operating hours each day will stay the same, with the Fedwire Funds Service open 22 hours a day and NSS open 21.5 hours a day.
To read this release in its entirety, click here.
FedNow Service Available for Instant Federal Agency Disbursements Through Treasury's Digital Payout Program
On October 2, the Treasury expanded its use of the FedNow Service to include federal agencies issuing payments through the Digital Payout Program, according to a news release from the Bureau of Fiscal Service.
The inclusion of the FedNow Service in the Treasury’s Digital Payout program will provide agencies with a modern method for delivering instant payments to individuals. More broadly, it will help the federal government expand access to advanced and efficient customer-focused financial management solutions.
“We’re excited to offer instant payments as an option in our Digital Payout tool for our agency partners,” Marshall Henry, Director of the Fiscal Service Digital Disbursement and Debit Card Solutions program, said in the release. “Treasury is uniquely positioned to support federal programs and mitigate the risk of financial fraud by using efficient and modern technologies like the FedNow Service. Adding the service to our suite of digital payment options supports Treasury’s long-term goal for federal financial management and the push for electronic payments that allow safer, quicker access to funds and have less risk of fraud. We remain dedicated to advancing the tools, services, and data available to support federal agencies nationwide.”
Looking ahead, the Fiscal Service anticipates an increase in use cases and applications for instant payments, which will benefit both federal agencies and the individuals they serve. It will continue to encourage the adoption of the FedNow Service among agency partners.
New FedNow Service Risk Controls Deliver Enhanced Network Intelligence and Reporting
A pilot program is underway for a new network intelligence tool that will allow financial institutions to perform a “pre-check” on receiver accounts before making payments, according to a news release. The service incorporated the Federal Reserve’s ScamClassifier(SM) model into its fraud reporting system, enabling participants to provide additional details on suspicious transactions.
“While our customers tell us they’ve seen little evidence of fraud on the FedNow Service network to date, helping our customers combat fraud is a high priority for us,” Chief FedNow Executive Nick Stanescu said in the release. “We continually collaborate with financial institutions and others in the industry to develop new features and functionality that help reduce risk.”
The Federal Reserve is collaborating with pilot participants—including financial institutions and service providers—on a network intelligence tool designed to enable sending institutions to access data insights about a recipient account through an API before initiating a transaction via the FedNow Service. This capability will empower financial institutions to:
More accurately assess the risk associated with a potential payment by conducting a preliminary evaluation of the recipient account.
Utilize network-wide data insights to enhance their internal payment information and fraud prevention strategies, aiding in the decision to initiate a transaction.
To learn more about the pilot program, click here.
Research: Use Instant Payments to Attract Customers, Improve Satisfaction, and Lower Risk of Attrition
U.S. consumers prefer quick and convenient payment options, and younger generations are increasingly turning to nonbank providers to meet these needs. A new study from Federal Reserve Financial Services found that 78% of consumers favor faster payments, and half of them hold balances with nonbank providers.
According to the survey (PDF), approximately 6 in 10 consumers believe it is important for their financial institutions to offer instant payments, with 78% of Gen Z, in particular, considering it important—a 14% increase from the previous year.
“When financial institutions add modern payment options like the FedNow Service to their suite of services, they can meet consumer demand for a fast and frictionless experience,” Shonda Clay, Executive Vice President and Chief Product and Relationship Officer for Federal Reserve Financial Services, said in the release. “In a digital-first world, consumers increasingly expect the most efficient way possible when it comes to moving money.”
You can view the survey results here.
U.S. Faster Payments Council
U.S. Faster Payments Council and Accredited Standards Committee X9 Form Strategic Alliance to Adcance Faster Payments Standards
The U.S. Faster Payments Council (FPC), a membership organization dedicated to advancing safe, easy-to-use faster payments in the United States, and the Accredited Standards Committee X9 Inc. (X9), the organization accredited by ANSI to develop financial industry standards for the U.S., announced on October 6 a strategic alliance aimed at accelerating the development and adoption of standards for faster payments in the United States.
This partnership combines the FPC’s large industry membership and focus on accelerating faster payments adoption with X9’s extensive expertise in developing standards for the financial services sector. By merging their complementary strengths, the two organizations will work to create secure, interoperable, and widely adopted faster payments standards that benefit all stakeholders, especially business end users looking for more efficient and reliable payment solutions.
“The ability for business end users to send and receive payments quickly, securely, and with confidence is critical to the value proposition of faster payments,” FPC Executive Director and CEO Reed Luhtanen said in the release. “This alliance with X9 ensures that end users will benefit from robust standards that not only improve compatibility and security but also help create a consistent experience across the industry. Together, we’re creating the framework that will support greater trust and adoption of faster payments.”
To read this release in full, click here.
New Resource: Operational Considerations for Sending Instant Payments Guideline
The U.S. Faster Payments Council (FPC), a membership organization dedicated to promoting secure, easy-to-use faster payments across the United States, has announced the release of its newest industry resource, Operational Considerations for Sending Instant Payments Guideline, according to a news release. Created by the FPC’s Operational Considerations Work Group (OCWG), sponsored by Endava, the resource offers financial institutions (FIs) best practices and detailed guidance for effectively implementing instant payments sending capabilities.
"The OCWG Work Group has produced deliverables that are both substantial and practical," Miriam Sheril, Head of Product – U.S. at Form3 and FPC Operational Considerations Work Group Chair, said in the release. “This specific deliverable focuses on helping banks get ready to send payments, with rich detail supported by clear guidelines that make it easy to read and apply for specific purposes. It’s a collective effort we’re proud to see moving the industry forward.”
The new guideline covers a broad spectrum of operational factors that financial institutions need to address when enabling send-side functionality. These include liquidity management, user experience and interface design, real-time reconciliation, fraud mitigation, compliance requirements, and exception processing. The guideline also discusses business continuity, staffing and training considerations, and emphasizes the vital role of account holder education and disclosures in ensuring success.
To read the release in full, click here. Also, the Operational Considerations for Sending Instant Payments Guideline resource is now available for download from the FPC's Faster Payments Knowledge Center.
Digital Payments
2025 AFP Digital Payments Survey Released
The 2025 AFP Digital Payments Survey: A Triennial Publication, conducted by the Association for Financial Professionals® (AFP) and sponsored by J.P. Morgan, is now available. As J.P. Morgan notes, “This year’s edition dives into the data regarding B2B payment trends, cross-border payments and their advantages, as well as the challenges for today’s marketplace.”
Key highlights include:
- Financial professionals are optimistic about faster payments.
- B2B payments made by check continue to decline.
- Corporate treasurers’ familiarity with emerging digital payments is limited.
- Organizations recognize that their payments strategies will need to be upgraded – and soon.
- Cross-border payments are on the rise.
- The Executive Order to reduce check usage is unlikely to have a significant impact on corporate payments.
For a deeper dive into these key findings, click here.
Additionally, the comprehensive survey results are available for purchase. Highlights from the comprehensive report, excerpted from the AFP website, include:
Looking ahead, 76% of organizations plan to update their payments strategy within the next three years. Top priorities for doing so include:
- Exploring new payment formats and channels (72%).
- Updating payment file formats (40%).
- Developing a comprehensive baseline payment strategy (38%).
- 87% of organizations now engage in cross-border payments, up 9 points from 2022.
- Checks account for 26% of B2B payments, down from 33% in 2022.
AFP Members gain complementary access to this publication, webinars, and more.
NEACH—Upcoming Events
2025 Financial Fraud Forum (Virtual Event), October 15-16, 2025
The annual Financial Fraud Forum is back, featuring top presenters and experts who will address fraud challenges. The forum features sessions on the latest fraud trends, strategies for handling complex investigations, payment rules, and regulatory guidance for recovery, as well as insights into current fraud threats and more.
Click HERE to learn more and register.
2025 Future of Payments Symposium, November 3-4, 2025, at the Boston Marriott in Burlington
This symposium draws together financial experts, leaders of financial institutions, and FinTech innovators to explore the trends, partnerships, and technologies shaping the future of financial services. From macroeconomic challenges and market consolidation to real-world partnership successes and advanced developments in AI, fraud prevention, and instant payments infrastructure, this event serves as your guide to staying relevant—and thriving—in a fast-changing financial world.
Click HERE to learn more and to register for the symposium.
NEACH - New England Automated Clearing House Association is a neutral, member-focused advocate. Our role is to give you the intelligence, context, and connections you need to make informed strategic decisions. We bring together industry leaders, policymakers, and innovators so you can evaluate innovation through the lens of your institution’s mission and market strategy. For more information, visit neach.org.
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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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