CU: Spotlight

From Dough to Digital: Inside KEMBA’s Leap into Real-Time Payments



Originally established as the Kroger Employee Mutual Benefits Association—founded in 1933 to serve employees of The Kroger Bakery—KEMBA Financial Credit Union has grown from a single branch inside that bakery in Whitehall, Ohio, to 12 locations serving over 133,000 members throughout Central Ohio. Today, that same spirit of service motivates the $2.2 billion credit union to embrace the future of money movement.

After connecting to the RTP® network in 2024 and the FedNow® Service in 2025, KEMBA is providing immediate payments that give members instant access to funds—24/7/365. Interim Chief Operating Officer Gretchen Bartholomew explained why immediate payments are a strategic focus and how her credit union is navigating this transformation.

Why did KEMBA Financial Credit Union decide to implement immediate payments on the RTP network and FedNow Service?

Gretchen: To remain relevant and meet member expectations, we recognized the need to offer real-time payments, allowing funds to be sent and received instantly, 24/7/365, for both personal and business transactions. We began by enabling ‘Receive-only’ functionality and are planning to expand to ‘Send’ capabilities. This will keep us competitive by leveraging networks such as the RTP network and FedNow, empowering our members with faster, more convenient ways to move money.

What have you learned from implementing immediate payments at your credit union?

Gretchen:  The transition to a ‘Receive-only’ credit union was seamless. Within minutes of activation, members experienced immediate access to their funds, which quickly elevated their expectations. This positive response has prompted us to explore enabling outbound real-time payment capabilities.

“Real-time payments adoption continues to expand beyond individual members to include payroll providers and instant payment vendors, reflecting the growing demand for faster, more efficient transactions.” 

Interim COO Gretchen Bartholomew
KEMBA Financial Credit Union

When you first started thinking about connecting KEMBA Financial Credit Union to the RTP network and later to the FedNow Service, what concerns did you have?

Gretchen: Our primary concern was fraud risk, which led us to initially implement real-time payments as a ‘Receive-only’ institution. Another key consideration was the irrevocable nature of RTP transactions; once authorized and submitted, they cannot be canceled or recalled by the sender. While RTP provides the receiving institution with the option to process a refund request, this is not guaranteed and requires manual coordination between the financial institutions.

What are you seeing at your credit union now that you have been live on the RTP network and FedNow Service?

Gretchen: Real-time payments adoption continues to expand beyond individual members to include payroll providers and instant payment vendors, reflecting the growing demand for faster, more efficient transactions. As the industry evolves, member expectations are shifting toward immediate access to funds 24/7/365, making RTP a critical component of modern financial services. This trend underscores the importance of offering both inbound and outbound RTP capabilities to remain competitive and meet the needs of businesses and consumers alike.

“As the industry evolves, member expectations are shifting toward immediate access to funds 24/7/365, making RTP a critical component of modern financial services.”

Interim COO Gretchen Bartholomew
KEMBA Financial Credit Union

What differences and similarities are you seeing between the RTP network and FedNow Service?

Gretchen: The most notable difference between the RTP network and the FedNow Service is transaction volume. RTP currently processes substantially higher volumes than FedNow, given its earlier market entry in 2017 and broader adoption. From a functionality standpoint, both networks offer similar core features: real-time, irrevocable payments with 24/7/365 availability and immediate access to funds. We believe it is strategically important to support both networks, as doing so maximizes reach and transaction intake across multiple payment rails, ensuring flexibility and scalability for our members and business partners.

Have you experienced any fraud on either payment rail?

Gretchen: No, we have not experienced any fraud on either payment rail. This is primarily because we currently operate as a ‘Receive-only’ institution. From the outset, we recognized that enabling outbound real-time payments would require enhanced fraud detection capabilities. Our approach has been to strengthen predictive fraud prevention measures before moving beyond reactive strategies, ensuring we can mitigate risks effectively before implementing the ‘Send’ functionality.

What impact has the implementation of immediate payments had on day-to-day operations and liquidity management?

Gretchen: The implementation of immediate payments has had minimal impact on day-to-day operations, as settlement posting typically takes only a few minutes. From a liquidity management perspective, current transaction volumes remain relatively modest, so there has been no significant effect on cash flow or reserve requirements. However, we anticipate that as adoption grows and volumes increase, particularly with the addition of outbound capabilities, liquidity monitoring and forecasting will become more critical.

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