Seizing the instant payments opportunity

The RTPⓇ network and FedNowⓇ Service continue to increase in volume. At the Nacha Smarter Faster Payments conference in May 2024, Mark Majeske, a former team member who designed the RTP network, hosted a panel discussion with financial institutions. Amy Faley, Manager of ACH, Veridian Credit Union; Cassandra Tucker, Director of Operations, ABNB Federal Credit Union; and Anne Sharkey, SVP, Operations, First Internet Bank, discussed the opportunities and challenges associated with implementing instant payments. Here are some key takeaways from the session.

The drive toward instant payments

The increasing push for instant payments is permanently shifting how financial institutions operate. As a result, many financial institutions need to understand the journey of integrating instant payments, from the initial decision to adoption, operational challenges, risk management, and use case monetization.

One of the key drivers behind the interest in instant payments is the demand from both individual and business customers for faster money movement. “It’s all about moving money when they want to, and that’s an ongoing trend,” Majeske remarked, referencing data from the RTP network showing that 50% of transactions occur after banking hours.

 

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