Pidgin, The Bankers Bank Team for Faster Payments

Payments platform Pidgin is working with The Bankers Bank to extend Pidgin’s platform to more than 250 banks in New Mexico, Oklahoma and Texas.

As the companies said in a news release Tuesday (July 19), the partnership will give community bank customers a quick, easy and secure way to send and receive payments.

“With Pidgin, payments are routed directly from financial institution to financial institution,” the release said. “Customers’ money is hosted by the financial institution and transferred from their account directly to the payee’s account, which can either be an individual’s personal account or a merchant account.”

And because Pidgin — powered by VSoft Corp — eliminates the need to use a third-party holding account or a virtual wallet, the company can carry out a more secure transaction process with lower fees.

In addition, Pidgin supports the use of different payment routes, among them FedNow, real-time payments and same-day ACH. That means The Bankers Bank’s network of banks can route payments according to speed, cost and network, ensuring payments arrive when an account holder needs them, at the lowest possible cost.

“Consumers are demanding faster payments in more areas of their lives,” said Pidgin Head Abhishek Veeraghanta, citing figures from the Federal Reserve showing a majority of consumers value faster payment capabilities.

Read more: Federal Reserve: American Anxieties Amplify Value of Safe, Efficient Instant Payments

That’s in keeping with what Kenneth Montgomery, first vice president and chief operating officer, Federal Reserve Bank of Boston and FedNow service program executive, wrote recently in the PYMNTS eBook “Baseline 2022: What the Next Six Months Holds.”

According to Montgomery, “research tells us that in the face of continued unpredictability, businesses as well as individuals are expressing the need for more control over their money. They want to move money faster and get immediate access to their funds, 24/7.”

He said the fed’s survey of business and consumers showed a strong and rising appetite among end users for faster and instant payments.

“Among other trends, 9 out of 10 businesses expect to be able to make and receive faster payments in the next three years,” Montgomery said.