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Fiserv Inc. announced Wednesday that Salem Five, a Salem, Mass.-based mutual savings bank, is piloting FedNow, the Federal Reserve System’s real-time payments network, which is expected to launch in July.
In addition to Salem Five, nearly 20 financial institutions, including Peoples Bank and Mediaoplis, Iowa-based Mediapolis Savings Bank, have signed contracts to be part of the FedNow pilot program via Fiserv. Aside from those financial institutions, Fiserv says it has several more clients preparing to commit to the FedNow program.
Fiserv will link the financial institutions to the FedNow network through its Now gateway, which connects financial institutions to multiple real-time payments networks, including The Clearinghouse Payment Co.’s RTP network and Zelle, which is operated by Early Warning Services LLC.
“When it comes to moving money, speed matters,” Matt Wilcox, president of digital payment solutions for Fiserv, says in a statement. “Consumers and businesses want more real-time payment options, and financial institutions are ready to deliver. The FedNow Service provides a reliable network through which financial institutions can both receive and send real-time payments on behalf of their customers, and we anticipate strong adoption.”
Salem Five, which was one of Fiserv’s first clients to commit to offering FedNow, has more than $6 billion in assets and 33 retail branches in Essex, Middlesex, Norfolk, and Suffolk counties in Massachusetts.
“Our customers expect ‘one click and it’s done’ experiences, and that’s the reason we’re focused on real time,” Rob Ames, head of digital delivery for Salem Five, says in a statement. “Real-time payments are integral to the future of Salem Five. The infrastructure we’re putting in place today with Fiserv and the FedNow Service will enable innovation and product development for years to come, and we will be ready.”
