The next step for faster payments: Interoperability

For many US banks, next year's summer blockbuster will be the launch of FedNow, as what many are seeing as the next milestone in the move to real time payments in the US. With the system joining the existing RTP system with both promising to modernize the way money moves and allow for greater use of instant payments, it seems the shift to real-time payments is 'inevitable'.

But like every great movie there is always a twist.

Whether we will see these services gain traction is tied to what many believe to be a major hurdle, that of interoperability. As it stands FedNow may not interoperate with the other faster payment operator RTP, and discussions on the two eventually getting to message interoperability don’t seem to be a priority. So, whilst the big banks may take on the expense of connecting to both systems, smaller banks may not have this luxury.

In our upcoming webinar we look at the issues surrounding interoperability and real time payments.