Seamless Integration Without Core Disruption
Keith Riddle, chief executive of Payfinia, and Steve Bone of Member Access Processing (MAP) announced a joint effort on July 17 to embed FedNow and Real‑Time Payments (RTP) capabilities into more than one hundred credit unions nationwide, all without requiring a core‑system overhaul. The partnership aims to give member‑owned banks instant‑payment tools while preserving existing technology stacks.
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Payfinia’s architecture sits atop a credit union’s current core, using APIs to connect to FedNow and the RTP network. This approach means that member data, account structures, and reporting remain untouched, while members gain the ability to send and receive funds instantly, 24/7. „Our goal was to make instant payments as simple as a button click for credit unions,” Riddle said. „We built a layer that talks to the core, not a whole new core.” MAP’s processing backbone handles settlement and compliance, ensuring that each transaction meets federal standards. Early adopters report a 30 % increase in member engagement after launching the service, as customers appreciate the speed and convenience of real‑time transfers.
Can Credit Unions Compete With Big Banks on Payment Speed?
The partnership directly addresses a long‑standing gap between credit unions and larger financial institutions. Historically, credit unions have lagged in offering cutting‑edge payment options due to limited resources and legacy systems. By embedding FedNow and RTP, Payfinia and MAP give these smaller banks a competitive edge. „Members expect the same instant experience they get from big banks,” Bone noted. „Now they can get it from their local credit union, which often means better service and lower fees.” The rollout also supports digital wallet functionality, allowing members to store payment credentials securely and use them across multiple devices. Analysts predict that widespread adoption could push more credit unions into the digital‑first arena, reshaping the competitive landscape.
The initiative is set to expand throughout the year, with additional credit unions slated to join the program. If successful, the model could become a template for other financial service providers seeking to modernize payment capabilities without costly core replacements.
Frequently Asked Questions
How does the integration avoid changing a credit union’s core system? Payfinia uses API‑based middleware that connects to the existing core, handling payment requests externally while preserving all core data and processes.
What benefits do members see from FedNow and RTP? Members can send and receive funds instantly, any time of day, without waiting for traditional batch processing, enhancing convenience and cash flow management.
Will there be additional fees for credit unions or their members? The partnership aims to keep costs low; fees are structured around transaction volume and are generally lower than those charged by large banks for comparable services.
