Arvest Bank will be participating in a new Federal Reserve Bank program that is designed to allow financial institutions to provide instant payment services around the clock.
This new pilot program, FedNow, is aimed at giving banks and financial institutions of all sizes access to safe payment services that are processed in real time. According to the Federal Reserve, customers will be able to send instant payments and recipients can have full access to funds within seconds at FedNow participating institutions.
The program is slated to launch in 2023 and be deployed in phases.
Approximately 100 bank, credit unions and other financial institutions are currently participating in the FedNow program.
“The ability to move and receive money instantly, at any time of the day, is becoming the expectation for consumers here in the U.S.,” Tristan Thompson, payments strategy director for Arvest Bank, said in a statement. “Instant payments have vast benefits for both consumer and business customers. That includes convenience, more control of funds in the form of quicker access to earned pay, improved cash flow and predictability for businesses.
Through this program, an individual or business can send a payment message through a financial institution participating in FedNow, and after screening the payment, the financial institution will submit the payment to the FedNow platform. FedNow will verify the message and send the payment message to the recipient’s financial institution for confirmation. Once the recipient’s financial institution confirms and accepts the payment, FedNow will debit and credit the accounts for both the sender and the recipient. FedNow then sends a payment message to the receiver’s financial institution and an acknowledgement to the sender’s financial institution.