As per the official release, Conduent will leverage FedNow Service’s national network to facilitate the connection between companies and government agencies with their customers and constituents.
This was made possible following a strategic partnership that the BPS established in late 2022, when the company joined forces with BNY Mellon, thus allowing its customers access to various payment capabilities through a unified platform named the Digital Integrated Payments Hub.
BNY Mellon has also announced that it adopted the FedNow Service and, thus, became one of the first banks that have initiated sending and receiving payments from participating institutions and offering support for payment activities through settlement or liquidity services.
FedNow Service, the new system for instant payments developed by the Federal Reserve Banks, was launched on July 19, 2023. Following its release, banks and credit unions gained the option to instantly transfer money to customers on any day of the year.
According to the official statement, BNY Mellon has been one of the early adopters of the FedNow Service. The bank reportedly started working with the pilot program in January 2021.
As part of this collaboration, BNY Mellon actively participated in testing and offering input for the service's development. What is more, in the months before the launch of the new instant payments offering, the bank also completed a multi-step client testing and certification program.
Through its use of the FedNow Service, BNY Mellon aims to broaden the options for corporations, non-banking financial institutions (NBFIs), and fintechs to move funds instantly, offer bill payments options, payroll, and instant account funding, among other services.
Via its partnership with BNY Mellon, Conduent seeks to broaden its digital payment solutions by offering the US Federal Reserve’s FedNow Service for instant payments.
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