Reed Luhtanen, Executive Director, FPC
As we kick off 2025, the FPC is focusing on broadening understanding of faster payments within the industry to support its adoption and use.
Fittingly, the FPC recently released the latest resource from its Operational Considerations Work Group: Operational Considerations for Instant Payments Send-Side Primer. The Primer serves as a guide for financial institutions (FIs) to enable instant payment sending capabilities on the FedNow® Service and RTP® Network. While faster payments adoption is proliferating, it is growing more on the receiving side. But as all know, to reap the full benefits of faster payments, implementing both sending and receiving capabilities is critical.
Importance of User Interface/Experience (UI/UX) in Sending Faster Payments
To that end, the new Primer highlights essential considerations for institutions expanding from receiving to sending instant payments, emphasizing areas such as operational readiness, user interface design, and liquidity management. For instance, for UI/UX considerations, the Primer suggests FIs and third parties prioritize simplicity, speed, and security. Per the Primer, it should also be instinctual, and include key features like intuitive navigation, clear instructions, and instant feedback on transactions status. In this way, FIs and third parties can deliver a seamless and efficient faster payments experience for all.
Safeguarding Faster Payments
In addition to faster payment preparedness topics, the Primer delves into subjects to ensure the security of faster payment send transactions, such as fraud mitigation, exception processing, and compliance considerations and requirements. When it comes to fraud mitigation, the Primer notes that fraud risks with send capabilities are not that dissimilar from risks in other traditional payments channels. So, many internal controls effective in fighting ACH, check, wire fraud, etc., are also effective for mitigating fraud when it comes to sending instant payments. Examples of measures FIs and third parties can employ include: digital profiling, real-time fraud screening, category and transactions limits, payee validation, account validation, and more. Implementing measures such as these and remaining vigilant will ensure instant payments remain safe whether receiving or sending.
With an examination of subject areas like the aforementioned and others, the Operational Considerations for Instant Payments Send-Side Primer provides a thorough analysis of the key topics that will help ensure financial institutions can safely and successfully implement send capabilities to realize the full potential of faster payments.
And just where are most organizations on their faster payments journey? You’ll find out more soon as we will be releasing the results of the 2025 Faster Payments Barometer in the coming weeks. The Barometer serves as an important gauge on industry perspectives and opinions around faster payments. With comprehensive industry views outlined, it supports our work to advance common understanding and shared goals.
We encourage you to be on the lookout for the release of the 2025 Barometer this month.
With so much happening already, 2025 is shaping up to be a pivotal year for faster payments, and we look forward to everything the FPC will accomplish this year.