A new payment type is being introduced in the United States which provides immediate availability of funds to the payee, and immediate settlement between participating financial institutions, in real time or near-real time, 24/7.
Key attributes of these new faster payment systems are:
- Credit push, single payment transactions
- Deposit-based transfer, not card-based
- Immediate funds availability to the receiving accountholder
- Immediate settlement between participating financial institutions
- Guaranteed good funds
- ISO 20022 message format
- Large transaction limits
Enable your accountholders to get paid instantly
SHAZAM’s real-time credit receive service is an affordable, easy-to-implement entry point into faster payments for community financial institutions.
- The SHAZAM Core solution is certified to receive, decision, and post real-time payments received through SHAZAM’s dedicated connection to the RTP System operated by The Clearing House. Financial institutions on other core software can also participate by integrating with our APIs.
- Development and pre-production testing is currently underway for a second U.S. instant payment system, FedNow, which is operated by the Federal Reserve. SHAZAM and several of our clients are currently participating in the FedNow Pilot program.
SHAZAM’s real-time credit receive service will support receipt of incoming payments from both the RTP and FedNow systems as soon as FedNow is ready for general market availability, which is expected in the second half of 2023.
Potential benefits to your accountholder
- Instant availability of funds transferred from a virtual account such as PayPal or Venmo
- Expedited merchant settlement for Square users
- Real-time payroll deposits from employers that offer this option
- Instant transfers from accounts at participating financial institutions
- Benefits will expand as faster payment adoption continues to grow rapidly
Benefits to your financial institution
- Meet U.S. market demand for faster and better payment methods
- Improve customer service
- Account retention
- Help community financial institutions compete
- Stay relevant with emerging payment innovations
Contact us to find out more!