Hawaii financial institutions collaborate to expand islands’ instant payment access
10/26/2026
When your business day starts as the U.S. mainland’s is winding down, payment timing becomes a critical consideration.
Hawaii banks and credit unions have long grappled with the complications of operating across wide-ranging time zones. Misaligned settlement windows and accounting deadlines have historically created payments bottlenecks for businesses and consumers on the islands. But according to the Pacific Payments Alliance (PacPay) (Off-site) — a nonprofit that provides payment education, support and advocacy for Hawaii financial institutions — the FedNow Service provides a solution to these challenges.
Recognizing that a coordinated, statewide approach would create greater value for Hawaii’s banks, credit unions and those they serve, the ‘FedNow Hawaii Cohort’ was formed. Today, PacPay’s ‘FedNow Hawaii Cohort’ is leading the charge on a coordinated effort to make the FedNow Service available at financial institutions across the islands.
We spoke with Bryan Luke, president and CEO of Hawaii National Bank (Off-site) and a PacPay member, about PacPay’s efforts and the importance of instant payments for Hawaii.
Q: Why have PacPay members advocated for the FedNow Service? What are you hoping to accomplish by coordinating FedNow adoption efforts across the state?
A: “PacPay members have long collaborated to strengthen Hawaii’s payments ecosystem, and support for the FedNow Service grew out of that shared commitment. Our ‘FedNow Hawaii Cohort’ is a unified effort that concentrates PacPay’s ability to turn conversation about payments into collective action.
“Pushing for state-wide adoption helps strengthen Hawaii’s financial infrastructure and ensures access to instant payments across our entire community. It also helps individual financial institutions because they’re not working through the adoption process alone. They have access to lessons learned from their peers and a clear sense of the impact instant payments can have for their customers or members.”
Q: What instant payment benefits can help address Hawaii’s payment pain points?
A: “Hawaii’s biggest payment challenges come down to timing. Other payment rails have cutoff windows aligned with the mainland business day, which often means our customers wait days to access their money.
“The FedNow Service removes that friction. With always-on, real-time settlement, funds move in seconds, which gives people access to money when they need it, not when the next business day starts.”
Q: As more Hawaii financial institutions join the FedNow Service, what value do you see instant payments bringing to your business customers?
A: “Because FedNow transactions settle in real time and operate 24x7x365, they offer unprecedented flexibility across time zones. Moving money in real time helps clear the bottleneck of delayed funds. This is especially meaningful for small and mid-sized businesses that depend on steady cash flow to manage payroll, inventory and expenses. Real-time confirmations also reduce reconciliation headaches, meaning businesses can keep their books up to date.
“More broadly, the FedNow Service supports a stronger local economy.
“The service gives Hawaii businesses the speed and reliability customers now expect, from faster payouts to quicker refunds and disbursements. In a market where distance and timing amplify delays, instant payments give our local businesses the tools they need to compete and grow.”
Want to learn more about the real-world impact of instant payments? Read more FedNow Q&As here.