FedNow Solutions Page
The FedNow Service is a new instant payment infrastructure developed by the Federal Reserve that allows financial institutions of every size across the U.S. to provide safe and efficient instant payment services. (https://www.frbservices.org/financial-services/fednow/about.html)
Simply put, it will update the payments infrastructure of the United States and provide instant payments for end customers across all participating and regulated banks, credit unions, and financial institutions. Similar instant payments systems are found in many other countries, for example, UK Faster Payments and the Indian UPI system . The experience there is that the faster payment system competes against some uses of physical cash and moves other P2P and C2B transactions to the lower cost and higher performant system. The net result is a much higher volume of digital payments over a few years.
Financial institutions of all sizes in the United States are now working to update their legacy banking systems and enable this core functionality. For more information, please see: https://explore.fednow.org/guided-journey
BaaSFlow Test Suite
BaaSFlow Test Suite is a proven solution, based on four years testing in a SEPA instance. SEPA is the pan-European effort to create instant payments across all countries in a consistent manner. SEPA instances, which rely on the regulations and rules established by the European Payments Council, have adopted a set of standard message types, specifically ISO20022, as called for in PS2. When FedNow began its journey it was able to leverage the PS2 and SEPA learnings and has largely adopted the same ISO20022 message types for the US system.
BaaSFlow Test Suite benefits as well from participating in a SEPA instance, namely the Hungarian instant payment system GIRO. The GIRO rollout involved a steep learning process for in country Banks needing to operate in a 24X7 environment . Such challenges also exist in the US, in particular with smaller banks and legacy software systems that don’t anticipate the level of system availability.
As Banks seek certainty, BaaSFlow is available to offer tests to highlight key scenarios, such as, “What happens when all of the external banks suddenly send 10X their normal (historical) volumes to my bank?”
BaaSFlow PaymentHUB aka “Glide”
Glide is our PaymentHUB solution that leverages payment orchestration engine to enable a many to many channel connector all available in multi tenancy in the cloud. Our plan is to connect directly to FedNow, and offer “Connectivity to the FedNow Service” via a regulated entity. Please reach out if you are a regulated entity in good standing with OCC and FedNow and would like to work with us to offer this in market.