The Road to FedNow® Instant Payments

Alloya’s Real-Time Payment Processing solution for the FedNow Service (Receive Only) makes it possible for your members to receive instant payments directly into their accounts at your credit union. Behind the scenes, it manages the connectivity to the FedNow network and processes received payments in seconds so the impact of these transactions is reflected immediately in your member’s account.

Enabling your members to receive instant payments into their accounts is a great low-risk way to get started with instant payments. Your members will come to expect this capability as employers, businesses, government entities and other institutions begin offering instant refunds, claim payments, daily payroll, loan disbursements, etc.

Alloya suggests you start the process now because there is going to be significant demand among financial institutions to be onboarded to the FedNow Service– and the process takes more than a few days or weeks as integration with your credit union’s core system is a requirement for FedNow instant payments.

Since FedNow instant payments requires settlement between financial institutions to happen as part of the payment processing, Alloya has you covered. Alloya’s Real-Time Settlement solution excuses your credit union from establishing your own account at the Fed. In addition, Alloya handles transparency into settlement activity and provides reconciliation tools to simplify the entire experience.

Once you are comfortable with receiving FedNow payments into your members’ accounts, you will likely start to explore sending instant payments. When sending payments, this creates a need to manage liquidity in your account at the Fed. By sticking with Alloya and having us manage liquidity for instant payments, this simplifies your operations while providing seamless service to your members. More on that later… Let’s get back to the starting point.