Catalyst’s End-to-End Solution for the FedNow® Service

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Explore the Faster Payments Digital Experience Effective July 2023, the FedNow Service is the Federal Reserve Banks’ new instant payment platform. The FedNow Service provides financial institutions of every size, in any location across the nation, access to safe and efficient instant payment services in real time, 24 hours a day.

With Catalyst Corporate and the FedNow Service, credit union members and businesses will be able to send and receive instant payments conveniently. Recipients will have full access to funds immediately, giving them greater flexibility to manage their money and make time-sensitive payments.

Catalyst’s role as an early adopter of the FedNow Service

Catalyst Corporate was one of the earliest adopters, participating in the FedNow Service pilot program in 2022, as well as in the FedNow Service launch in 2023. 

What is the FedNow Service?

The FedNow Service is the Federal Reserve’s new instant payments infrastructure, allowing participants to send and receive instant payments 24/7/365.

Why choose Catalyst as your connection to the FedNow Service?

Processing instant payments via the FedNow Service requires a front-end solution with back-end connectivity and core integration.

Fortunately, Catalyst’s comprehensive offering is comprised of three solutions – send, receive, settlement – to provide maximum flexibility based on individual need.

All-in-one or à la carte, Catalyst’s solutions for the FedNow Service provide key benefits. Credit unions can connect to multiple payment rails through a single provider, with both settlements and transactions available in a single portal. Plus, Catalyst’s extended hours for same day funds settlement (11:30 p.m. CT vs. 6:00 p.m. CT with the Fed) means greater interest earnings.

Simple and seamless integration is another reason credit unions are choosing Catalyst as their connection for sending and receiving instant payments through the FedNow Service. From start to finish, Catalyst leads members through the entire onboarding process, including all the necessary paperwork and education needed to use the system.

What can you expect from the initial FedNow Service 2023 launch?

  • Core clearing and settlement capabilities to support a range of transaction types and use cases
  • Use of the widely accepted ISO® 20022 standard and other industry best practices to support interoperability
  • Flexible adoption, including support for the use of service providers and correspondents
  • Optional enrollment as a “receive-only” participant
  • Request-for-payment capability and tools to support the handling of payment inquiries, reconcilements and certain exceptions
  • Features to enhance the credit union experience by broadcasting participant availability to support their transition to 24/7/365 operations including a user interface that supports data needs and access to balance information on weekends
  • Payment integrity and data security along with tools to help credit unions combat fraud, such as a transaction value limit and reporting features
  • A liquidity-management tool allowing participants to transfer funds to each other, supporting the liquidity needs of instant payments

After the initial service launch, additional features are planned related to user experience, error resolution and case management.