Editor’s Note: This article was originally published on CUInsight and is shared here for your convenience. You can also view the original publication on their website.
Although instant payments are quickly becoming a competitive necessity, many credit unions remain cautious about adopting the RTP® network and the FedNow® Service.
So, what’s holding them back?
In a recent CU Broadcast webinar, Alacriti’s Mark Majeske and The Clearing House’s Steve Douglas addressed the top misconceptions they hear from financial institutions—and offered answers based on real-world experience.
Misconception #1: Implementing instant payments is complex and disruptive.
What credit unions think:
“This will take months, require heavy core development, and disrupt current operations.”
The reality:
With the right technology partner, implementation can be faster and less intrusive than many anticipate. Both speakers stressed that launching receive-only capabilities can be done in as little as two to three weeks, thanks to integration support from providers like Alacriti and streamlined onboarding from The Clearing House.
Majeske explained that Alacriti guides clients through every stage—core integration, GL setup, operational changes, fraud strategy, and certification. “We give them a detailed checklist and a BRD,” he said, referencing the business requirements document used to keep projects on track.
Douglas added, “Not every institution has a massive tech budget. But you don’t need one. You just need the right partner—and it doesn’t have to be your core provider.”
Misconception #2: There’s no clear way to generate ROI.
What credit unions think:
“If we’re not charging fees for each transaction, how do we make money?”
The reality:
Instant payments can generate value in multiple ways—even if you never charge a single transaction fee.
Majeske pointed to three overlooked benefits:
- Lower attrition: Members are less likely to leave if their financial institution offers features such as early payroll, instant disbursements, or seamless wallet funding.
- Higher deposit balances: Members who receive instant payments tend to keep more funds in their accounts.
- Stronger member satisfaction: Faster, flexible money movement deepens engagement and builds long-term loyalty.
Douglas noted that The Clearing House is rolling out a deposit monetization calculator to help FIs quantify the value of receiving deposits sooner. In one example, a $4 billion credit union saw over $1 million in potential annual profit from faster receipt alone.
And for those ready to explore “send” monetization, real-world use cases abound. “A DraftKings customer paid $5 to instantly transfer $10,000 in winnings,” Douglas said. “The credit union didn’t promote real-time payments—the member just discovered it through the app.”
Misconception #3: We’ll start with Receive and figure out Send later.
What credit unions think:
“We’ll test the waters with Receive Only and decide on Send down the road.”
The reality:
Many institutions that delay Send never actually get to it.
According to Majeske, over 95% of Alacriti clients opt to enable both Receive and Send up front, even if they implement Send at a later stage. “The biggest regret we hear is, ‘We wish we had enabled Send sooner,’” he said. “Once they see the member value, they want it live.”
Douglas agreed: “Too often, Send becomes phase two—and phase two never happens. By the time you’re ready, budgets shift, teams move on, and the opportunity slips away.”
Even if you don’t activate Send right away, building the infrastructure now gives your product team a runway to test use cases, pilot with select members, and launch quickly when the time is right.
Misconception #4: Our members aren’t asking for this.
What credit unions think:
“If members aren’t demanding RTP or FedNow, why prioritize it?”
The reality:
Members are asking—they just don’t use the industry terms.
“Members won’t say ‘I want FedNow,’” Majeske said. “They’ll ask why they can’t get their paycheck early like their friend does. Or why they can’t move money on a Saturday. Or why a loan disbursement takes three days.”
Douglas echoed this: “Your members think they already have instant payments through PayPal or Zelle. They don’t realize your institution can deliver better experiences—and that competitors are already doing it.”
In fact, according to Datos Insights, 42% of businesses have changed or have plans to change financial services providers to gain access to instant payments. A report from The Clearing House showed that 74% of FIs with regional or national footprints allow individual consumers to send instant payments, versus just 44% of credit unions or local banks. That should be a wake-up call.
The speakers emphasized that member demand is best understood by studying behavior, not requests. Use data to identify:
- How many members are pulling funds from wallets or gig apps
- How often ACH payments are reversed or delayed
- Where members are losing patience in digital journeys
Then ask what you can help them do faster, safer, and on their terms.
Instant payments aren’t just about speed—they’re about relevance. As Douglas put it, “When Uber drivers are opening new accounts just to get paid faster, you know this is real.” Majeske summed it up this way: “While you’ve got the team together, do both send and receive. You may not turn on send immediately, but you’ll never regret being ready.”
Whether your credit union is just starting to evaluate instant payments or looking to expand, the time to act is now—before your members decide to move their money elsewhere.
Watch the full webinar, Instant Payments Myths vs. Reality: What Credit Unions Need to Know.
Alacriti’s centralized payment platform, Orbipay Payments Hub, provides innovation opportunities and the ability to make smart routing decisions at the financial institution to meet their individual needs. Financial institutions can take full ownership of their payments and control their evolution with ACH, Wire, TCH’s RTP® network, Visa Direct, and the FedNow® Service, all on one cloud-based platform. To speak with an Alacriti payments expert, please contact us at (908) 791-2916 or info@alacriti.com.
