By Glenn Wheeler, Catalyst Corporate VP of Payments Products & Innovations
In the blink of an eye. On-the-spot. In a jiffy. All these terms describe a short span
of time, something that happens instantaneously. In the U.S. payments industry, 2023 will be a significant year for “instantaneous” transactions and Catalyst Corporate will be actively involved in supporting credit unions’ faster payment needs through it all. Here is an update on a few of our activities:
FedNow℠ Service
The launch of the FedNow Service, set for the May-July 2023 timeframe by the Federal Reserve, is widely anticipated. Credit unions will be able to send, receive and settle these instant transactions through Catalyst Corporate’s holistic payments platform.
Catalyst Corporate upgraded its core systems to prepare for 24x7x365 settlement. This settlement will be instant at the transaction level and leverage our Master Account at the Federal Reserve for credit unions to participate. Catalyst Corporate is working with Aptys Solutions to fulfill required steps for certification on the FedNow Service in time for the summer general release. Catalyst Corporate, Aptys Solutions (Aptys) and about 120 other financial institutions and service providers are involved in the FedNow Service pilot phase.
RTP
Catalyst Corporate currently provides settlement services for credit unions as a Funding Agent on RTP® from The Clearing House. Catalyst Corporate will use a new faster payment manager program developed by Aptys to automate the settlement process for both RTP and the FedNow Service. Installation of this capability is targeted for this year to align with the FedNow Service general release.
P2P
Catalyst Corporate’s person-to-person (P2P) service is in process of rebranding from PayMōli to Moli. Moli, which currently offers ACH capabilities, is beginning beta testing for debit transaction functionality. The target release for Moli with both ACH and debit capabilities is second quarter of this year. FedNow Service and RTP transaction capability will be added to Moli later in 2023. Credit unions signing up for Moli will receive a comprehensive set of marketing materials to introduce Moli to their members.
CU LoanPay
Catalyst Corporate will be launching a new loan collection product in the first quarter of 2023, called CU LoanPay. CU LoanPay is an easy way for credit union members to make loan payments even if they do not have an account at the credit union. ACH and debit card rails will be used to facilitate these payments. Credit unions on the service will be able to access the system from a branch or even a mobile device to collect payments. This empowers the credit union to proactively collect on outstanding accounts, thereby increasing liquidity and reducing past-due accounts.
Faster payments all wrapped up
Numerous enhancements and new capabilities are also on our faster payments roadmap. The focus is on a straightforward, easy-to-implement process, with safety and security in mind.
Catalyst Corporate continues to be an active leader in the industry through its diligent participation in Nacha, the U.S. Faster Payments Council, FedNow Service working groups and the FedNow Service pilot program. In 2023, Catalyst Corporate team members will be presenting at industry events and conducting virtual and in-person town hall gatherings to provide faster payments information for credit unions.
We want to be your all-in-one partner for faster payments resources and solutions. If you need assistance developing a faster payments strategic plan, Catalyst Corporate can help. For more information about the new payment services, including FedNow Service and real-time payments, contact us today.