The Federal Reserve has selected Ripple partner ACI Worldwide to collaborate on feature development for the FedNow service.
ACI Worldwide will create an adoption roadmap for the FedNow real-time payment service.
In a press release, Ripple partner ACI Worldwide has announced its selection to participate in a pilot program sponsored by the United States Federal Reserve Bank (Fed), as Twitter user “The Cryptic Poet” found. The cooperation will focus on the development of a new real-time payment service called FedNow.
ACI Worldwide is a company dedicated to the development of software for real-time payment solutions at a corporate level. Through its solutions, clients can manage digital payments, enable omni-commerce payments, process invoices, reduce fraud and manage the risk of digital payments.
ACI Worldwide develops FedNow service
Through the FedNow service, the Federal Reserve intends to enable “thousands of financial institutions” in the United States to make secure, real-time payments to consumers or businesses. Ripple’s partner will play a key role in the pilot program.
The company will be in charge of assisting in the development of the features and functions of the new FED service. In addition, its expertise will allow it to provide input and ensure that the service is ready to be tested before its launch to the public.
ACI Worldwide will also be tasked with defining FedNow’s adoption roadmap, real-time payment strategies, and creating an approach for the service to be adopted by companies. The Head of Real-Time Payments for ACI Worldwide, Craig Ramsey, had this to say about the cooperation:
ACI is committed to the advancement of real-time payments in the U.S., and we look forward to helping the Federal Reserve develop its first major new payment system in four decades. The consumer demand for speed, convenience and simplicity with payments will continue to increase, and we are eager to work with the Fed and other pilot participants to drive the successful implementation, adoption and monetization of real-time payments in the U.S.
The FedNow service pilot program was announced on January 25 and will involve more than 110 organizations in the “FedNow community”. The FED will create a participation ecosystem somewhere in 2021 to test specific features of the service in communication with ACI Worldwide and the financial institution’s other partners. Federal Reserve Bank of Kansas City President and CEO, Esther George, said:
We’re gratified by the industry’s tremendous interest and willingness to devote time and energy to help us develop the FedNow Service. As a result, we’ve adjusted to accommodate more participants than we originally planned.
ACI Worldwide’s connections to Ripple
As reported by CNF, in September 2020 ACI Worldwide announced a cooperation with the Bank of India to help the institution modernize the payments infrastructure. Remarkably, the State Bank of India uses the ATM network and POS ATM software provided by Ripple Partner SBI. Furthermore, the website of ACI Worldwide states that it “supports real-time schemes around the world, meaning that any bank can use Real-time Payment Systems to support SWIFT FIN, gpi, DLT (e.g. Ripple), Wire and immediate payments”.
As Ripple’s CEO stated yesterday, one of the company’s focus for 2021 be the ongoing work with central banks and developing protocols that support the direct exchange of CBDCs on XRPL, using XRP as a bridge currency.
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