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The long-awaited U.S. Federal Reserve's FedNow payment system service officially went live for its first full day of activity Thursday, after nearly four years in development.
The Federal Reserve Banks developed the FedNow Service to facilitate nationwide reach of instant payment services by financial institutions — regardless of size or geographic location — around the clock, every day of the year.
Of the six credit unions and seven corporate credit unions that were among the 57 early adopters, two of those credit unions have reported a successful launch of the FedNow Service on its first day: Catalyst Corporate Federal Credit Union of Plano, Texas ($4.4 billion, 1,133 members) and Pima Federal Credit Union of Tucson, Ariz. ($1 billion, 64,375 members).
In a joint statement from the credit unions, Catalyst Corporate officials said Pima FCU was able to begin "successfully receiving instant payment transactions" on the FedNow Service through Catalyst.
"This is a significant milestone for the payments industry. Both members and businesses continue to ask for the flexibility and 24/7/365 availability that instant payments deliver. Beyond the U.S. Treasury Department's participation in the FedNow Service, it will only be a matter of time until other large players are sending instant payments, increasing our members' expectations," Celyna Cervantes, chief retail officer at Pima, said. "From day one, our primary goal was to fulfill member demand, enabling them to receive payments from anyone, anywhere, any time. Now, they can rest easy knowing they won't have to look elsewhere to do so."
Catalyst COO Brad Ganey said, "Pima Federal has been the ideal partner for the initial launch of the FedNow Service through Catalyst's suite of software applications. They share our vision to be an active participant in the payment evolution and are committed to meeting member expectations for seamless, instant transactions. Together, we are revolutionizing how payments are made, which further highlights our commitment to meeting the needs of credit unions."
Through financial institutions participating in the FedNow Service, businesses and individuals will be able to send and receive instant payments at any time of day, and recipients will have full access to funds immediately, giving them greater flexibility to manage their money and make time-sensitive payments.
Access will be provided through the Federal Reserve's FedLine network, which serves more than 10,000 financial institutions directly or through their agents.
In a statement, Catalyst said it is actively onboarding additional early-adopter credit unions of the FedNow Service.
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Michael Ogden
Editor-in-Chief at CU Times. To connect, email at [email protected]. As Editor-in-Chief of CU Times since 2016, Michael Ogden has led the editorial team in all aspects of content strategy and execution, including the creation of the publication’s exclusive and proprietary research database of the credit union industry’s economic landscape. Under Michael’s leadership, CU Times has successfully shifted to an all-digital editorial product with new focuses on the payments, fraud, lending and regulatory beats. Most recently, he introduced a data-focused editorial product for subscribers that breaks down credit union issues into hard data, allowing for a deeper and more factual narrative for readers. In 2024, he launched the "Shared Accounts With CU Times" podcast, which offers a fresh, inside-the-newsroom perspective through interviews with leaders from the credit union industry and the regulatory world. He dives into pressing credit union issues, while revealing the personalities working behind-the-scenes to push the credit union world forward. His background includes years as a radio and TV anchor/reporter and a public relations and digital/social media manager, where he covered the food and music industries, as well as cooperatives and credit unions. Over the years, he has launched numerous exclusive video and podcast series, including a successful series of interactive backstage interviews with musicians at music festivals, showcasing his social media and live streaming production skills.
