Pidgin is helping financial institutions enable FedNow receive and send capabilities while taking advantage of new incentives that can help offset implementation costs.
If your financial institution has been waiting to move forward with FedNow, 2027 gives you a financial reason to stop waiting.
The Federal Reserve’s 2027 FedNow Discount Program provides statement credits to qualifying financial institutions that enable receive and send capabilities. Receive discounts can reach $20,000, while send discounts can reach $80,000 depending on FedACH Receipt Discount Program status and FedNow send volume.
For institutions that qualify for the maximum receive and send discounts, that is up to $100,000 in potential statement credits.
If your institution is already planning a FedNow implementation, the opportunity is straightforward: move forward and take advantage of the available incentives.
If your institution has stalled, the opportunity is even more significant. The discount program can help offset the cost of implementing and quickly provide capabilities you need to remain competitive in instant payments.
And Pidgin can help you get there.
Pidgin can get financial institutions live on FedNow receive and send today. Financial institutions do not need to wait for a future product release or spend another year figuring out how to build FedNow send internally.
Unlike many other companies, Pidgin offers financial institutions both FedNow receive AND send capabilities today.
Pidgin serves as a central connection point between a financial institution and the FedNow Service, while integrating with the institution’s existing core processing system, digital banking platform and other third-party applications. Pidgin also supports connectivity to the RTP network and other faster payment options.
For institutions pursuing the 2027 FedNow discounts, that means Pidgin can help with both sides of the opportunity, including getting receive and send enabled and creating the foundation needed to generate send volume.
That second part matters because the largest incentives are not awarded simply for turning FedNow on.
The FedNow send discount is tied to volume
The Federal Reserve has structured the send portion of the program around actual usage.
Financial institutions with FedNow send enabled can qualify for a maximum $20,000 discount by reaching at least 100 transactions per month.
Institutions that are eligible for the FedACH Receipt Discount Program can qualify for up to $40,000 by reaching at least 2,500 transactions per month. Institutions participating in the FedACH Receipt Discount Program can qualify for up to $80,000 at the same 2,500-transaction threshold.
Existing senders that are already above the applicable transaction threshold can qualify by increasing average monthly FedNow send volume by at least 50%.
That makes send capability particularly important.
An institution that enables receive can accept FedNow payments. An institution that enables send can begin creating the payment use cases that generate transactions.
Pidgin helps institutions build the volume behind the incentive
Pidgin is helping institutions enable receive and send, but the goal is not simply to get the institution technically connected. It is to put send capabilities into use.
That means identifying opportunities for instant payments across consumer and commercial relationships and giving account holders practical reasons to originate transactions.
Supplier payments. Business disbursements. Loan proceeds. Account-to-account transfers. Other payments where speed, availability and immediate settlement provide tangible value.
Those use cases create transaction volume. And under the 2027 program, transaction volume can directly affect the size of the incentive an institution receives.
Pidgin helps financial institutions move from FedNow enablement to FedNow usage.
Receive is a starting point. Send creates the larger opportunity.
The receive incentive makes participation more attractive, particularly for institutions that also qualify for or participate in the FedACH Receipt Discount Program.
But the program puts significantly more money behind send. That aligns with the larger strategic opportunity.
Receive allows an institution to participate in incoming instant payments. Send gives the institution the ability to originate payments and incorporate instant payments into products and services for its own account holders.
That is where institutions can begin looking beyond the one-time incentive toward longer-term ROI. The discount helps offset cost. The send capability remains.
So do the use cases, transaction volume and potential revenue opportunities the institution develops around it.
If FedNow has been on the roadmap, now is the time to move it forward
The 2027 discount program does not change the need for instant payments. It changes the economics of implementing them.
Financial institutions that have delayed FedNow now have the opportunity to offset some of the cost of moving forward while building capabilities that extend well beyond the incentive period.
Pidgin can help institutions enable both FedNow receive and send today and develop the transaction activity needed to get more from that investment.
If FedNow send is still sitting on your roadmap, talk to Pidgin about getting it live.