Discover the transformative potential of
instant payments for financial institutions and businesses.
Instant payments are revolutionizing the way money moves, and the implications are
huge. As businesses and financial institutions move away from old-school
methods and services, the need for real-time payment solutions is quickly
becoming a necessity.
The Benefits of Instant Payments
Instant payments offer a wide range of amazing benefits that can significantly boost
efficiency and your customer’s satisfaction levels. A few key advantages of
these revolutionizing payments include:
• Instant Money Movement: Transactions are completed in
under 20 seconds, ensuring immediate availability of funds.
• Instant Confirmation: Participants receive real-time
confirmation, eliminating the uncertainty of traditional payment methods, and
speeding up the payment.
• Reduced Manual Processes: Automation reduces the need for
manual intervention, resulting in cost savings and fewer errors.
• Streamlined Reconciliation: Faster settlement processes
simplify account reconciliation for financial institutions.
“Instant payments represent a paradigm
shift in how we move money, unlocking efficiency and cost savings as the
industry transitions from batch-based to real-time systems.”
Prime Use Cases of Instant Payments
1. Payroll and Earned Wage Access: Instant payments enable
employees to receive wages in real-time, which is crucial for those living
paycheck to paycheck.
2. Selling Assets: Whether selling a car or a home, instant payments provide
guaranteed funds, building trust in your payments platform and significantly
boosting transaction speed.
3. Vehicle Repossession: Financial institutions can release repossessed vehicles
upon receiving instant payment, ensuring risk-free and timely transactions.
4. Utility Payments: Consumers can pay utility bills instantly, ensuring
services remain uninterrupted.
The FedNow Service: An Overview and Its Benefits
The FedNow Service, which was launched by the Federal Reserve, is a groundbreaking
platform designed to facilitate instant payments in the United States. Here’s
what sets it apart:
• 24/7/365 Availability: Transactions can be processed
any time, any day, and anywhere, ensuring constant service availability.
• Final Settlement: Transactions are settled in
real-time, eliminating the delays associated with traditional payment methods.
• High Transaction Limits: FedNow is capable of handling
transactions up to $500,000, making it suitable for both consumer and business
needs.
• Data-Rich Messaging: The service uses the ISO 20022
format for comprehensive transaction data.
“FedNow Service instant payments offer immediate funds availability, ensuring
transactions are completed within seconds.”
Did you know?
• 79% of consumers live paycheck to paycheck.
• 96% of businesses find that offering instant wage access helps
attract talent.
• 74% of consumers used faster payments in 2023, with 57% expecting increased usage in the
future.
• 86% of businesses utilized faster or instant payments in 2023.
FedNow provides a versatile platform that can be adapted to various financial
transactions, enhancing the payment landscape for both consumers and
businesses. A few of its key use cases include:
1. Business-to-Business Payments: Enables businesses to pay vendors instantly, facilitating
smoother operations and potential cost savings.
2. Consumer-to-Business Transactions: Consumers can make instant payments for services and goods,
improving customer satisfaction.
3. Account-to-Account Transfers: Simplifies internal transfers between accounts, providing a
seamless user experience.
4. Person-to-Person Payments: Facilitates quick payments for everyday transactions like
babysitting or lawn care.
“The FedNow Service is designed to be all-inclusive and use case agnostic,
ensuring it meets diverse needs across various sectors.”
SWIVEL™ is Making Moves to Help You
Instant payments are poised to transform the financial world, offering speed, security,
and convenience like no other. By understanding the benefits of utilizing this
revolutionary payment method, financial institutions can take advantage of the
full potential of instant payments, ensuring they remain competitive in a
fast-evolving market. An innovative payments solution is coming to SWIVEL.
Until then, get started with Connect2Core™, SWIVEL’s real-time payment data posting hub, now so you are implemented and ready to go when we launch Instant Payments.
Race into the future with SWIVEL!
