Pidgin completes certification for FedNow’s instant payment service

By Delisha Fernandes

Pidgin a secure real-time payments platform, has completed testing and certification for the FedNow Service, the Federal Reserve’s new instant payment offering launching in July 2023.

The FedNow Service will enable financial institutions to offer 24x7x365 instant payments, allowing customers to send and receive money immediately. With Pidgin, financial institutions of all sizes can choose to send and receive real-time payments using the FedNow Service on behalf of their retail and business account holders.

“We are excited that early adopters of all sizes across the country are making strides in their operational readiness for live transactions through the system,” said Ken Montgomery, vice president and FedNow Service program executive Federal Reserve Bank of Boston. “Completing certification is a key milestone for participating organisations to validate their ability to deliver instant payment services.”

“Nearly 90 % of financial institutions, payments facilitators, and other businesses are currently implementing the FedNow Service, or plan to do so in the next two years,” said Abhishek Veeraghanta, CEO of Pidgin. “The FedNow Service is changing the payment landscape as we know it, and stakeholders across the industry are preparing to adapt. Pidgin is proud to facilitate this shift ahead of its upcoming launch, and we look forward to empowering more financial institutions to offer real-time payments for their account holders.”

Since the solution eliminates the need to use a holding account by a third-party provider or a virtual wallet, Pidgin facilitates a more secure transaction process with lower fees. Once a transaction is complete, funds are settled and available immediately within the recipient’s account.