As we celebrate the first anniversary of the FedNow Service, it’s an ideal time to reflect on its impact and how Aptys is shaping the future of real-time payments. Over the past year, FedNow has revolutionized the U.S. payments landscape, offering instant, real-time transactions that are transforming how consumers and financial institutions operate.
FedNow’s First Year: A Snapshot
The FedNow service has been a significant success! Over 800 financial institutions and firms are now connected to FedNow, a significant increase from the fewer than 60 at launch on July 20, 2023, according to American Banker’s “FedNow’s first year, and its impact on real-time payments” article published on July 15, 2024. Experts predict a surge in instant payments, with volumes growing over 30% annually. This means faster, more convenient money transfers for everyone—no more waiting for checks to clear or ACH transfers to arrive.
Since its launch, FedNow has transformed how Americans send and receive money. Consumers enjoy 24/7/365 instant transfers, better financial management, and the elimination of overdraft fees. For financial institutions, FedNow offers faster payment options, improved efficiency, and new revenue streams through value-added services. According to a survey by Arizent, 95% of banks and 100% of credit unions listed improvements in customer experience as a reason to support real-time payments.
“We’ve had years to become aware of real-time payments. FedNow’s significance is that instant settlement is not just a novel innovation, but a permanency,” said Jennifer Lucas, Americas payments consulting leader for EY (as cited in American Banker, 2024, July 15).
Benefits for Consumers:
- Say Goodbye to Waiting: No more waiting for checks to clear or ACH transfers to process. With FedNow, money moves instantly, anytime, any day.
- Controlling Finances: Immediate access to funds empowers people to manage their money better, avoid overdrafts, and make payments on time.
- Keeping Information Private: Unlike some third-party apps, FedNow transactions keep data within the secure banking system.
Aptys: A Driving Force in Instant Payments
As a key partner in this transformation, Aptys has played a crucial role in driving FedNow adoption. Trusted by over 17% of live FedNow participants for our Instant Pay solution, Aptys supports over 33% of FedNow’s Liquidity and Settlement Service providers.
“While we’re still early in this process of creating a ubiquitous network of instant payments, we’re starting to see the benefits of paying anyone, anywhere, anytime through Aptys’ Instant Pay solution,” said Eric Dotson, Executive Vice President. “As businesses and consumers recognize the FedNow service as a powerful tool for payments, they will find new ways to use it that we’ve never even thought of, providing new products and services that will revolutionize the communities every financial institution serves.”
Aptys’ Instant Pay solution for the FedNow service includes:
- Seamless Integration: Aptys collaborates with financial institutions, strategic core vendors, and other mobile/online banking platforms for end-to-end interoperability.
- Innovation: Adding capabilities like Request for Payment (RFP) to simplify electronic fund requests.
- Strategic Partnerships: Collaborating with customers like Vizo Financial, Alloya, First National Bankers’ Bank, and Catalyst, as well as with industry leaders.
- Support: Aptys provides Instant Pay through our redundant, high-availability infrastructure, ensuring the system is operational when customers need it and offering 24/7/365 support.
Aptys’ First Year of Growth for Instant Payments
Aptys was one of the first vendors to certify on the FedNow network. From day one, Aptys was ready to assist customers with the technology needed to offer the FedNow Service. Since going live in July 2024, Aptys has over 130 customers (over 15% of the market) using Aptys’ Instant Pay system for managing, sending, and receiving instant payments.
“We’re still early in this journey,” said Eric Dotson. “Aptys plans to deliver new functionality that will provide our customers with strategic advantages in the market and create new opportunities to leverage all payment channels more efficiently.”
Looking Ahead: Building a Seamless Future Together
Aptys is committed to continuous innovation, developing features like real-time fraud detection to enhance security and user experience. We believe real-time payments will revolutionize financial interactions, and we’re excited to lead this change alongside the FedNow Service.
Join us in building a future where seamless, instant payments empower everyone! Learn more at www.aptyssolutions.com.