By Glenn Wheeler, Director of Item Processing Operations
Unlike many business operations, the COVID-19 pandemic has done little to slow down the nationwide faster payments initiative. If anything, the need for instant payments is stronger than ever.
According to a recent article in Mobile Payments Today, “The demand for real-time
payments has taken on a new urgency in recent weeks. The need to access immediate funds has forced businesses and individuals to leverage various means of moving funds across town and across borders to provide the basic necessities of everyday living and business continuity.”
Catalyst Corporate remains actively involved at the forefront of the faster payments movement. Significant progress has been made since the last update, and we’re pleased to share some of the latest developments from across the industry.
The Federal Reserve
The Federal Reserve is moving “full steam ahead” with FedNow, its interbank 24x7x365 real-time gross settlement service. The Federal Reserve Board plans to open another request for comment on its FedNow service by the end of the year. At this time, the solution is still on target for completion by 2023 or 2024.
The U.S. Faster Payments Council (FPC)
In late March, the FPC named former Walmart executive and payments expert Reed Luhtanen as its new executive director. Luhtanen, who succeeds FPC’s inaugural executive director Kim Ford, brings vital experience to this leadership role. The transition became effective April 13.
“We’re thrilled to have Reed leading the FPC as executive director and look forward to leveraging his industry knowledge, expertise and vision for the organization. His unique experience at the intersection of payments-related public policy, financial services, corporate treasury and nonprofit service will help take the FPC to new heights,” said FPC Board Chairperson Michael Bilski.
On May 28, the FPC announced members of its 2020 Board of Directors. Newly elected and re-elected members include: John Drechny, Merchant Advisory Group; Stuart Dwyer, Microsoft; Tom Feltner, Center for Responsible Lending; Kim Ford, Fiserv; Matt Howarter, Walmart Inc.; Steve Ledford, The Clearing House; Robert Palmer, Community Bankers Association of Ohio; Carl Slabicki, BNY Mellon; Peter Tapling, PTap Advisory, LLC; and Pat Thelen, Ripple.
The FPC recently published a new Faster Payments Interoperability white paper. Developed by the FPC Network Committee, the white paper addresses inoperability issues and strategies for achieving seamless processing of payment instructions across a variety of payment solutions. This valuable new industry resource is available in the FPC’s Faster Payments Knowledge Center.
The council has also been hard at work developing two new Work Groups aimed at helping navigate other pathways necessary to a ubiquitous faster payments solution. The first was the Cross Border Payments Work Group, which is currently gathering information on the necessary components for aligning the international operating policies and requirements of the current U.S. faster payments systems.
The QR Code Interface Work Group was also assembled to “facilitate the adoption and usage of faster payments by developing a QR code template for use by end users and financial institutions.”
Catalyst Corporate has a member in each of these new Work Groups, further extending its involvement in FPC activities and its ability to keep member credit unions abreast of the latest developments and advancements.
Other Industry Updates
Person-to-person payments solutions have continued to grow in popularity and demand during the COVID-19 environment. On May 29, Catalyst Corporate announced the purchase of Georgia-based Aptys Solutions, the leading provider of real-time processing and electronic payments solutions for correspondent service providers. The acquisition of this state-of-the-art offering positions Catalyst Corporate and its member credit unions at the forefront of the instant payments continuum.
Stay connected to the faster payments initiative. Catalyst Corporate will provide updates from the Federal Reserve and the U.S. Faster Payments Council as they continue to unfold.