BURLINGTON, Mass.–Eastern Corporate Federal Credit Union (EasCorp) is is reporting it has taken a giant step forward in the FedNow Service Pilot Program by joining with several other financial institutions in testing end-to-end transmission of payment messages using the FedNow instant payment service.
EasCorp noted the FedNow Service will allow individuals and businesses to send and receive payments within seconds at any time of the day, on any day of the year, such that the receiver of a payment can use the funds immediately.
The FedNow Service is expected to launch mid-year 2023, during the May to July 2023 time frame, heralding the inexorable transformation to the ways in which payments are cleared and financial settlement occurs among financial institutions in the United States.
“Following more than 18 months of development, EasCorp is excited to be part of the initial group of institutions engaged with the Federal Reserve in testing the transmission of payment messages,” said EasCorp President/CEO Cynthia Nelson. “FedNow Service officials recognized our readiness for this next step and that is a testament to the hard work and expertise of our software development staff within EasCorp’s CUSO, Vertifi Software.”
Vertifi CEO Asim Mian said the company intends to provide its instant payments service users with an affordable, application-agnostic gateway solution that requires no special infrastructure investment. “Our team also will provide EasCorp’s member credit unions and others with customized guidance, planning and implementation of their instant payments road map.”
For its part, EasCorp said it will provide around-the-clock instant payments settlement services so that member credit unions do not need to invest in special infrastructure or additional staffing.