Increased access to immediate payments and growing demand continue to drive forward the migration of payments from just “faster” to immediate. With the imminent launch of the industry’s second new immediate payment rail on the horizon later this year, the Federal Reserve’s new FedNowSM Service, now is the time to consider integrating instant payments into your credit union’s suite of products and services if you haven’t already done so.
To that end, it is important to have a basic understanding of the benefits and use cases that will likely be relevant to your members so you can identify the payment experiences you should invest in.
Immediate payments offer many benefits not only for consumers but also for financial institutions. Some of these benefits include:
Let’s look at some of these use cases in the next section.
There are numerous ways immediate payments can help financial institutions remain competitive and be in the best position to support their members' needs. The following are a few of the most popular use cases and reap benefits for both businesses and consumers, but of course, not every use case may be applicable to every credit union.
Business to Consumer (B2C)
Person to Person (P2P) and Account to Account (A2A)
Business to Business (B2B)
For a more comprehensive look at additional use cases, download our infographic.
As each credit union experiments and experiences immediate payments, they will learn what is most valuable to their specific credit union. And that’s the greatest benefit of this new payment option— that there is so much opportunity to enhance how credit unions serve members, streamline their business functions and generate new products and revenue.
Additional information about the benefits of and use cases for instant payments can be found here: Exploring the benefits of instant payments: A primer.