Volante Joins Federal Reserve’s Pilot Program for FedNow Instant Payments
27 January 2021
by Srinivas Chintakrinda, Senior Director, Product Management
Volante becomes a part of payment history.
Our company is among a select group of financial institutions, payment processors and technology companies that will begin work on an instant payment service for the United States, run by the Federal Reserve, the U.S. central bank.
The payment service, which will offer payments within seconds over a private network, is due to be available in 2023 or 2024.
Volante will be a leader in the industry’s charge to provide American consumers and businesses with instant payments services that deliver control, convenience, and certainty by participating in a pilot program for the upcoming service, called the “FedNowSM Service”.
In the initial advisory phase, participants in the pilot will help to further define the service and adoption roadmap, industry readiness approaches and overall instant payments strategy.
FedNow will provide an important payments infrastructure. Financial institutions and their service providers will be able to use the service as a springboard to bring the benefits of safe, efficient instant payments to communities across the country.
Access to the instant payment system will be provided through the Federal Reserve’s FedLine® network, which serves more than 10,000 financial institutions directly or through their agents.
Participation in the FedNow pilot scheme reflects Volante’s commitment to helping modernize payment systems around the world.
Volante is a member of the U.S. Faster Payments Council. In 2017, in the U.S., Volante enabled the first real-time payment over The Clearing House RTP® network between two banks − BNY Mellon and US Bank.
Since this milestone, much progress has been made in real-time payments − including while our nation and the world, have been in the grip of a pandemic. However, much more can still be done to improve instant payment services in U.S. and make them accessible to businesses of all sizes and consumers.
Outside the U.S., Volante has helped banks of all sizes process instant payments in Europe (SEPA instant payments through TIPS and RT1), Mexico (SPEI), Saudi Arabia, and many other countries. Volante’s cloud-native and API-first solutions are an ideal fit for the demands of ISO 20022-based instant payments networks like FedNow.