Volante Technologies announced it has been working with a US banking customer to help the custodian bank successfully complete pilot testing on the FedNow instant payments service.
The comprehensive pilot test included various transaction scenarios, such as send, send/receive, and bank-to-bank pilot testing. By validating the core instant payments functionality on the FedNow network, Volante reaffirmed its commitment to assisting banks in seamlessly adopting the groundbreaking instant payments network.
Reed Luhtanen, executive director for the U.S. Faster Payments Council (FPC), said in a statement: “As a sponsor of the FPC’s annual Barometer survey, Volante actively contributes to the evaluation of payment system stakeholders, enabling us to assess the advancements, trends, and challenges surrounding faster payments in the United States.”
While the FedNow Service will not launch until July of 2023, banks can already test their ability to connect to the network with Volante so that they can offer instant payment services to their customers when the service becomes available. In the meantime, Volante provides a single solution to support all US real-time payments, including The Federal Reserve’s FedNow service, The Clearing House RTP and Zelle, which are available on premise, in the cloud or as payments-as-a-service model.
“Key features such as the ability to automate payments and flexibility of funds are driving businesses toward faster payment options which they leverage to lower costs and help manage cash flow,” said Deepak Gupta, SVP global head for Payments as a Service at Volante Technologies.
A recent study by the Federal Reserve finds that 62% of its respondents noted cash flow management as one of their most impactful challenges and reported a need for greater flexibility and speed in their payment options as they navigate supply chain complexity and other economic obstacles.
Volante is a longtime supporter of early adopters on the FedNow instant payments network and is known for driving ubiquity of real-time payments across the globe. In 2017, Volante facilitated the first real-time payment for BNY Mellon over The Clearing House RTP network. Following the launch of its real-time payments solution, it remained a driving force in payments modernization internationally, helping banks of all sizes process instant payments in Europe (SEPA instant payments through TIPS and RT1), Mexico (SPEI), Saudi Arabia, and many other countries.