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Catalyst Corporate | Sep 11, 2023
During the recent NASCUS State System Summit, Catalyst Corporate’s VP Payments Strategy and Product Innovation Glenn Wheeler sat down with Mike Lawson from CU Broadcast to share highlights of his conference session, "Onboarding the Instant Payments Bullet Train." Wheeler’s session covered the adoption of instant payments and industry momentum since the launch of the FedNow® Service.
In the interview, Wheeler explains why adoption of the FedNow Service is critical for credit unions.
“It is to meet the demands from both consumers and businesses that are driving toward getting money and settlement faster.”
Lawson mentioned that – aside from lending –payments are percolating as a top priority
for credit unions. Looking to the future, Wheeler believes the FedNow Service will quickly become table stakes for credit unions to offer to their members and businesses.
“Members may not ask for the FedNow Service specifically,” Wheeler said, “but they want instant payments, which translates into demand for the service.”
Lawson asked Wheeler when credit unions should adopt the FedNow Service.
“Sooner rather than later,” Wheeler responded. “The service is already live and we’re doing settlement and transactions today.”
One of Wheeler’s takeaways for his session was urging credit unions to clarify misinformation on what the FedNow Service is and what it is not.
“It is a new payment rail developed and designed for instant payments,” Wheeler said. “It is not an end-to-end solution for instant payments. The FedNow Service is a means by which financial institutions can connect to one another, but it is not plug and play.”
With many instant payment solutions already in use around the globe, Lawson concluded, “Other financial institutions are going to use the FedNow Service, so why not get on that train right now?”
View the full interview between Mike Lawson and Glenn Wheeler here. If you would like more information regarding the FedNow Service, register now for our online session, “Faster Payments Essentials,” on September 18 at Catalyst Corporate’s Economic & Payments Forum.