NEW YORK— As 2025 winds down, credit unions face a pivotal moment in payments transformation—one that’s moving rapidly from planning to execution.
A new GlobalData report warns that the era of preparation is over: the next phase will separate those merely complying with new mandates from those using them to redefine member experience, efficiency, and competitiveness.
Recent milestones—including Fedwire’s migration to ISO 20022, record growth in same-day payments, and new mandates under the OBBBA and GENIUS Act—mark the start of a new era focused on execution and scale.
ISO 20022: Beyond Compliance
Fedwire’s full migration to ISO 20022 in July 2025 aligned U.S. wire payments with global standards, but many institutions took shortcut approaches that limit the format’s potential.
“While expedient, these workarounds restrict ISO’s main benefit—enriched data that improves traceability, personalization, fraud detection, and compliance reporting,” said Deepak Gupta, EVP of engineering, product, and services at Volante Technologies, in the GlobalData report.
Gupta added that regulators will soon require fuller use of ISO data, meaning FIs that implemented translation layers will need to rebuild systems under tighter oversight. Those that invested strategically are already seeing “higher straight-through processing rates, cleaner downstream operations, and fewer manual interventions.”
Instant Payments And Inclusion
Instant payments are now core financial infrastructure. In 2024, the RTP network processed 343 million transactions worth $246 billion, up 38% year-over-year. However, access remains uneven—nearly three-quarters of large banks offer real-time payments versus less than half of smaller ones. Future competitiveness will depend on multi-rail orchestration, linking ACH, FedNow, RTP, and cross-border networks for real-time liquidity and settlement, Gupta explained.
The GENIUS Act’s Mandate
Signed earlier this year, the GENIUS Act compels U.S. systems to be faster, programmable, and inclusive. It makes API standardization and interoperable architecture baseline requirements rather than optional innovations.
Gupta stated that the foundations are in place: ISO-native messaging, modern rails, regulatory momentum, and AI. If these elements mature as expected, he said, the second half of the decade will look very different from today:
- Business payments will match consumer simplicity: Just as consumers expect one-click or invisible checkout, companies will demand the same automation for payroll, treasury, and supply chain flows.
- Payments will fade into the background of experiences: AI and agents will turn transactions into organic, invisible actions.
- The cost of payments will approach zero: Margins will shift away from the transaction itself, with FIs prioritizing revenues from services around the payment.
- Data will become the most important aspect of a payment. ISO-native data, enhanced by AI, will carry more value than the transaction itself, powering personalization, compliance, and predictive intelligence for businesses and consumers alike.