Fiserv on building a strong pipeline of financial institutions for the FedNow® Service
Fiserv
Fiserv (Off-site) is a global fintech and payments company providing solutions for banking, global commerce, merchant acquiring, billing and payments, and point of sale. Justin Jackson, senior vice president and head of enterprise payments, had this to say about Fiserv’s experience as a processor connecting financial institutions to the FedNow Service:
“From the very beginning, we saw a strong amount of interest in connecting to the FedNow Service from our financial institution clients. It’s why we chose to be involved in the FedNow Service early on, and why we were part of the FedNow Pilot Program during the development phase. Instant payments are changing the payment ecosystem, so we have prioritized the development of expertise and innovation in this area. The ability to offer instant payment capabilities impacts nearly every payment service, payment experience and payment system in place today.
“Right now, we have almost 300 financial institutions signed up for the FedNow Service and over 300 more in the pipeline. Interest is not slowing down. With these new connections, we are seeing the momentum of instant payments. Volume has grown exponentially from last summer, and I expect that to continue as we add more financial institutions to the network.
“When I think about the use cases that have been most prominent over the past year, there are a few that stand out. Earned wage access from providers, including one of the leading global online food delivery services, has been a dominant use case on the network. We are seeing payroll providers help businesses efficiently manage payroll internally, allowing them to offer next-day payroll capabilities for employees through instant payments. Leading trading and investment platforms are driving strong volume by giving customers a way to instantly transfer funds they are using to invest, or deposit earnings to their accounts. In general, cashing out of digital wallets is a regular use case we see in many different shapes and forms. Instant payments are redefining consumer and business expectations and becoming table stakes in the age of instant gratification.
“These use cases provide tangible examples and build the case for financial institutions to connect to instant payment rails and better serve their customers. There are also clear opportunities to build customer loyalty — for example, through real-time bill payment, a key future use case in which Fiserv is investing. While consumers and businesses aren’t always thinking about the ins and outs of financial services, they just want to get their wages the same day or pay a forgotten bill fast to avoid a late fee. The FedNow Service helps solve this need.
“We want to make sure we are conveying the benefits of the FedNow Service to clients and prospects, because we clearly see the value of instant payments and how it can benefit financial institutions. To that end, advocating for instant payments is crucial for our organization. The FedNow Service and other real-time rails have already transformed the way we move money for consumers and small businesses. By sharing insights, staying ahead of industry trends and fostering innovation, we can shape the future of financial services. It’s important to us and our clients that we provide valuable information to support their strategic planning and success around modernizing their payment infrastructure, and we hope to help shape this important development as we enter this new era of payments.”
Want to see what other organizations have to say about the FedNow Service? Read more FedNow customer testimonials here.