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Finextra
06-05-2025
- Business
- Finextra
What new technologies are redefining US payments?
0 This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community. This is an excerpt from The Future of US Digital Payments 2025: ACH & Beyond. New technologies are transforming the way transactions are initiated, processed, and settled and at the same time, challenging what the US knows of their payment infrastructure today. Real-time processing is now converging with programmability, cryptographic security, and intelligent automation to ensure digital payments are smarter, faster, than ever before. US Faster Payments Council executive director Reed Luhtanen opined to Finextra that: 'What used to take days to complete, can now happen instantaneously, providing significant benefit to both those entities making and receiving payments. 'As these technologies continue to evolve and leverage other advancements such as AI and the like, these faster transactions will bring even more value and benefit to the ecosystem, making them the go-to payment option of the future.' Future technology stacks must be event-driven to meet customer needs Gone are the days of relying on batch processing and monolithic architectures: payments providers must no longer be forced to contend with latency and fragility. The payment stack of the future must be event-driven so that transactions can be processed and orchestrated in real-time. In Citizens' view, although not an emerging technology, it is widespread adoption of APIs that will improve the relationships financial companies have with their customers. 'API platforms have been fundamental in the growth of embedded finance, allowing for financial products to be integrated into applications customers are already using in their day to day,' said Taira Hall. Financial products that leverage AI and ML must be embedded into existing applications AI and machine learning (ML) models are also being embedded into transaction pipelines for real-time fraud detection, with behavioural biometrics, device fingerprinting, and anomaly detection applied to every transaction. These technologies are also being used for credit scoring on the fly, where alternative data such as cash flow analysis is used to authorise lending at PoS, and to predict the likelihood of success or failure across multiple payment rails. Citizens agrees that AI can improve efficiency across organisations and streamline the payments process, but in the future. Taira Hall, head of payments at Citizens shared that, 'it is likely AI will shift from an efficiency driving tool, to a driver of innovation and competitive differentiation through greater customisation and refinement.' To succeed in 2025 and in the future, financial products that leverage data-driven technologies such as AI, ML, and predictive analytics must be used, in the first instance to inform which products should be offered first to which set of customers. Green Dot's Renata Caine advised that 'hyper-personalising a customer's experience using data based on user behaviour will increase their satisfaction with a product and lead to further adoption of a company's offerings.' Alongside this, Caine added that 'promoting the use of predictive analytics to maintain fraud prevention and customer protection will build customer trust and longer-term loyalty. Data-driven technologies will become a competitive advantage for fintechs that invest heavily in them.' Being tokenisation early adopters may be advantageous for the future The future of US digital payments is moving in a direction where systems must be able to make autonomous, risk-adjusted decisions with latency in milliseconds, without disrupting security or compliance. Furthermore, as transactions become more automated, decentralised identity, zero-knowledge proofs, and continuous monitoring may also be increasingly integrated into the transaction process. While some financial players may already be tuned in to these developments, beyond 2025 or even 2030, use cases for tokenisation will come to fruition. By separating the logic of a payment from the movement of the funds, tokenisation is redefining how value is represented and transferred. Our outreach to banks already leveraging tokenisation revealed that programmable assets such as stablecoins could be leveraged for escrow, DLT-based settlement for cross-border clearing, and permissioned blockchain ledgers for interbank transfers, in the very near future. Further, smart contracts could be embedded into token transactions to allow developers to code business rules into financial flows, alleviating the burden of reconciliation, yet bolstering transparency. What does the industry think of the future of tokenisation? Gloria Wan, general manager of Kinexys Liink at Kinexys by J.P. Morgan, the firm's blockchain business unit, explained to Finextra that a 'shared, trusted ecosystem is necessary for institutions to move information and money faster in a world that values speed and ease of use more than ever before.' Kinexys Liink, for example, is a private permissioned information network, which connects banks, fintechs and corporations enabling efficient and secure information exchange in real time. With this in mind, Wan explained that because banks hold significant amounts of data and over time, have invested in tools and analytics to improve internal processing, more can be done to 'convert individual data assets into collective insight, and investment in data maintenance into new revenue streams. 'Data will create an entire new value chain for the payment and technology industry.'
Business Wire
28-04-2025
- Business
- Business Wire
Nacha and the U.S. Faster Payments Council: 161 Accredited Faster Payment Professionals (AFPPs) Pass Inaugural Exam
NEW ORLEANS--(BUSINESS WIRE)--Today, Nacha and the U.S. Faster Payments Council announced that 161 payments professionals successfully passed the inaugural Accredited Faster Payment Professional (AFPP) exam, marking an important milestone in demonstrating expertise and commitment within the faster payments ecosystem. The AFPP credential demonstrates the growing emphasis on professional education and industry excellence in an era where faster payments are becoming a cornerstone of commerce and economic activity. The AFPP accreditation, developed as a collaboration between Nacha and the U.S. Faster Payments Council (FPC), with assistance from Payments Associations and other leading payments industry experts and stakeholders, sets a new standard for professionals dedicated to advancing secure, efficient and innovative faster payments solutions. The exam focuses on a variety of payments rails used across the United States, including Same Day ACH, FedNow, RTP and Push-to-Card Debit Card Networks. This credential demonstrates the growing emphasis on professional education and industry excellence in an era where faster payments are becoming a cornerstone of commerce and economic activity. 'The AFPP designation exemplifies the dedication of industry professionals committed to leading the evolution of faster payments. Passing this exam is a significant feat, and these individuals have validated their expertise and proven their passion for shaping the future of payments,' said Jane Larimer, President and CEO of Nacha. 'Their hard work paves the way for stronger collaboration and innovation in our industry.' The FPC also recognized the significance of this accomplishment. FPC CEO and Executive Director Reed Luhtanen commented, 'We congratulate these pioneering AFPPs for their achievement. Faster payments are vital to improving the lives of consumers and the efficient operation of businesses. The AFPP accreditation reflects a shared commitment to fostering a secure and accessible faster payments ecosystem. This accomplishment is a testament to the expertise of these leaders in the field.' As the faster payments landscape grows and evolves, this achievement begins a new chapter in industry excellence and innovation. In the first quarter of 2025, Same Day ACH continued its growth trajectory, recording 326 million payments valued at $897 billion. Those represent increases of 19.1% and 24.8% respectively over the same time period in 2024. Likewise, more than 100 million instant payment transactions were conducted in the United States in the first quarter of 2025. For more information about the AFPP certification program or how to get involved, visit About Nacha Nacha governs the thriving ACH Network, the payment system that drives safe, smart, and fast Direct Deposits and Direct Payments with the capability to reach all U.S. bank and credit union accounts. There were 33.6 billion ACH Network payments made in 2024, valued at $86.2 trillion. Through problem-solving and consensus-building among diverse payment industry stakeholders, Nacha advances innovation and interoperability in the payments system. Nacha develops rules and standards, provides industry solutions, and delivers education, accreditation, and advisory services. About the U.S. Faster Payments Council (FPC) The FPC is an industry-led membership organization whose vision is a world-class payment system where Americans can safely and securely pay anyone, anywhere, at any time and with near-immediate funds availability. By design, the FPC encourages a diverse range of perspectives and is open to all stakeholders in the U.S. payment system. Guided by principles of fairness, inclusiveness, flexibility and transparency, the FPC uses collaborative, problem-solving approaches to resolve the issues that are inhibiting broad faster payments adoption in this country. For more information, please visit
Associated Press
04-02-2025
- Business
- Associated Press
1st Source Bank Joins U.S. Faster Payments Council
South Bend, Indiana--(Newsfile Corp. - February 4, 2025) - 1st Source Bank (NASDAQ: SRCE) is pleased to announce that it has joined the U.S. Faster Payments Council (FPC). This industry-led membership organization is helping to shape the future of the U.S. national payment system. It was created so Americans can safely and securely pay anyone, anywhere, at any time with near-immediate funds availability. Additionally, it focuses on the larger goals of safety, security and adoption of all faster payments. This is not the first time that 1st Source Bank has stepped up as a leader in the instant payment space. 1st Source was one of the first banks to adopt the innovative FedNow Service at its launch in July 2023 with both send and receive capabilities for clients. FedNow, developed by the Federal Reserve, allows eligible depository institutions to provide instant payment services. Additionally, the Bank has been using the Real-time Payments (RTP®) platform from The Clearing House since March 2023. Now, with the addition of the FPC membership, 1st Source brings valuable insights to the table while putting themselves in a position to be on the cutting edge of faster payment technology information. '1st Source Bank takes pride in our leadership role in the instant payment space, and we are excited about joining the Faster Payments Council,' said Andrea Short, President & CEO of 1st Source Bank, and President of 1st Source Corporation. 'Our dedication to innovation will be bolstered by the diverse perspectives of this group of organizations as we tackle the complex intricacies of faster payments in the United States.' 'The Faster Payments Council is thrilled to have 1st Source Bank join as a member,' said Reed Luhtanen, Executive Director of the U.S. Faster Payments Council. '1st Source's commitment to improvement, modernization and collaboration in the instant payment space aligns well with the FPC's mission of making faster payments a reality for all in the United States. We welcome their expertise in the financial sector, and their knowledge of the FedNow Service and the instant payment space as a whole.' 1st Source Corporation, parent company of 1st Source Bank, has assets of $8.9 billion and is the largest locally controlled financial institution headquartered in the northern Indiana-southwestern Michigan area. The Corporation includes 77 banking centers, 18 1st Source Bank Specialty Finance Group locations nationwide, nine Trust and Wealth Advisory Services locations, 10 1st Source Insurance offices, and three loan production offices. For more than 160 years, 1st Source has been committed to our mission of helping our clients achieve security, build wealth and realize their dreams. For more information, visit ### Contact: Hannah Nichols 574-235-2128
