The 4 Instant Payment Myths Holding Credit Unions Back

Guest Editorial by Marcia Klingensmith, The Instant Payments Maven™

If you’ve ever said, “We’re not ready for Send,” in a credit union leadership meeting, you’re not alone. Many well-meaning teams are stuck in receive-only mode -not because they don’t care, but because they’re operating under outdated assumptions.

Let’s bust the four most common myths preventing credit unions from meeting members’ real-time expectations, and lay out what to do instead.

Marcia Klingensmith

Myth 1: “We’re Too Small for This”

It’s easy to assume instant payments are a big-bank game. But that’s no longer true. Thanks to third-party service providers (TPSPs), light integrations, and sidecar models, even modest-sized credit unions can:

• Go live without a full core conversion

• Start with 1–2 manageable use cases

• Launch in as little as 90 days

You don’t need a giant budget - you need member-aligned clarity. And many credit unions already serve the exact segments that benefit most from Send capabilities: gig workers, small businesses, and members living paycheck to paycheck.

Use Case Spotlight: Me-to-me transfers, emergency payroll, and wallet disbursements offer immediate value, minimal risk, and strong signals of modernization.

Myth 2: “It’s Too Risky”

We hear this often: What if we get hit with fraud? What if something fails at 2 a.m.? What if we can’t control it?

Here’s the good news - these are real concerns with real solutions. Today’s instant payment infrastructure includes:

• Real-time fraud and velocity controls

• Configurable dollar limits and send thresholds

• Built-in exception handling and Reg E protections

Even better, credit unions can use a SAFE™ framework to evaluate each use case with precision:

• Can we manage liquidity?

• Can we verify member identity before funds go out?

• Can we mitigate fraud exposure and recover if needed?

• Can we improve service quality or reduce friction?

When you shift the question from “Is it risky?” to “How do we manage the risk?”— you get momentum, not stalemate.

Use Case Spotlight: Insurance payouts and earned wage access deliver immediate relief to members, while keeping operational exposure low.

Myth 3: “Our Members Aren’t Asking for It”

They may not be using the words “FedNow” or “RTP”— but their behavior speaks volumes:

• They use P2P apps like Venmo and Cash App

• They rely on gig platforms for same-day pay

• They accept digital wallet payouts without ever logging into online banking

• They look for faster ways to access loans, refunds, and insurance proceeds

The message is clear: speed, control, and convenience are now baseline expectations. And if your credit union can’t deliver it, someone else will.

Tip: To cut through the uncertainty, start with your own data. Transactions to and from digital wallets like PayPal and Venmo, ACH disbursements, check volumes, and Zelle usage often reveal hidden demand for faster options. For an external perspective, your Federal Reserve representative can also help analyze transactions to highlight how instant payments could make a difference.

Use Case Spotlight: Real-time vendor payments, wallet disbursements, and even request-for-pay bill options let you serve members and local businesses more efficiently—before they start looking elsewhere.

Myth 4: “It’s Too Soon to Decide”

If your team is waiting for a more mature market, the wait is over.

• 86% of businesses used faster/instant payments last year

• Digital wallet usage grew 32% year over year

• Sidecar models are already live across multiple cores

• Peer credit unions are quietly piloting Send use cases today

The real question isn’t whether to act. It’s whether your credit union will be at the table when members begin expecting instant options by default.

Use Case Spotlight: Me-to-me transfers offer a safe, internal pilot to build confidence and understand operational flows—before scaling.

Stuck in Receive-Only Mode? Here’s What It’s Costing You

The longer your credit union delays Send enablement, the harder it becomes to:

• Meet evolving member expectations

• Unlock the full value of your instant payment investment

• Defend your innovation story to your board and community partners

\You don’t have to “go big.” You just need a clear, low-risk roadmap that starts where you are.

What to Evaluate Before You Move Forward

If your credit union is considering Send capabilities, here are a few things to assess before taking the leap:

• Use Case Fit: Where can instant payouts directly improve member service or reduce friction?

• Operational Readiness: Do you have the right processes, team alignment, and support structure to pilot safely?

• Fraud and Risk Controls: Are your authentication, velocity, and recovery measures in place and tested?

• Internal Alignment: Are stakeholders across risk, operations, IT, and the board aligned on priorities and thresholds?

• Scalability: Can your infrastructure support a phased rollout that grows with member demand?

A structured way to start is by benchmarking with an Instant Payments Maturity Assessment™ (IPMA), scoring readiness across rails, risk, readiness, and revenue. This gives leaders a baseline to see whether they’re truly positioned to pilot Send safely.

These aren’t just technical questions, they’re strategic ones. And they’re easier to navigate with the right support.

3 Questions to Ask This Week

1. Are we sending any checks, ACH, or wires today that would better serve members if instant?

2. What risks are we assuming without a full evaluation?

3. Who in our organization is hesitant, and could benefit from a structured decision-making process?

The Bigger Picture

The path to Send isn’t just about speed, it’s about laying the foundation for ISO 20022 data, APIs, and embedded payments that will shape the next decade of member service.

If you’d like an outside perspective on your readiness—or simply want to pressure-test assumptions—I’d be happy to guide the conversation.

📅 Book a free 20-minute consult to explore how Send could align with your mission.

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Marcia Klingensmith, CEO of FinTech Consulting and the Instant Payments Maven™, helps credit unions modernize payments with clarity and confidence. With 20+ years at Visa, Bank of America, and FIS, she now partners with credit union leaders to turn instant payments, ISO 20022, APIs—and increasingly, stablecoin strategies—into real member value. Connect at linkedin.com/in/marcekmba.