SHAZAM To Add FedNow to Its Faster Payment Services

SHAZAM has spent the last two years helping guide the development of the Federal Reserve’s instant payments offering, the FedNow^® Service. As a participant of the FedNow Pilot Program, SHAZAM’s collaborative input has helped shape the service and adoption roadmap, industry readiness approaches and overall instant payments strategy for community financial institutions who depend on SHAZAM to ensure they’re on the competitive edge of payments.

Three of SHAZAM’s Core clients will be among the first financial institutions in the country to implement the new FedNow Service as part of the Federal Reserve’s staged production roll-out for FedNow pilot participants in Q3 2023.

The FedNow Service will offer financial institutions a competitive alternative to access the faster payments infrastructure when the Fed announces general market availability, which is expected later in 2023. Financial institutions and their service providers will be able to use the service as a springboard to bring the benefits of efficient instant payments to communities across the country.

Types of payments accountholders may receive via FedNow include: instant payroll deposits and advances, instant transfers from a digital wallet or money management application, account-to-account transfers from accountholders at other FedNow participant financial institutions, loan proceeds, payments on accounts receivable, and federal government payments from the U.S. Treasury.

Key benefits to your clients include meeting consumer demand for convenience and immediate availability of funds, improved customer service with faster and better payment methods, staying current with emerging payment innovations, remaining competitive with what the largest U.S. banks are already offering, and retaining customers who want to receive instant payments.

SHAZAM Credit Receive Service

SHAZAM has historically been at the forefront of providing innovative faster payment solutions. SHAZAM’s Credit Receive instant payments service, through integration with RTP^® from The Clearing House^®, has been available and in production with several financial institutions since early 2021.

Later this year, we plan to make our SHAZAM FedNow Credit Receive service available for non-pilot participants. Enrolled FIs can offer their accountholders (consumers, businesses, or government entities) instant funds availability on credit transfers received, within seconds of payment initiation, along with immediate interbank settlement for each transaction, 24/7/365.

For detailed information about the FedNow Service, visit FRBServices.org.