Leading the Payments Evolution: Welcome to Filene's Center for All Things Payments

Why Payments Are a Big Deal Right Now

While payments often fly under the radar in terms of consumer awareness, they’re where members feel your credit union working—or not working. Every swipe, tap, online checkout, bill pay, or P2P transfer is a moment of truth. And in 2026, those moments are coming faster and with less room for error.

New players and technologies are shaking up the payment ecosystem. Fintechs and big tech firms are rolling out payment experiences that set a high bar for convenience. Emerging payment options are starting to chip away at traditional credit union income and member engagement. Real-time payment networks like the Federal Reserve’s FedNow and The Clearing House’s RTP enable money to move instantly, 24/7. That’s great for consumers, but it means credit unions must upgrade systems and rethink fraud prevention. In fact, fighting fraud means credit unions have to bake security into every new payment service from the get-go.

At the same time, the very definition of money is being tested. Stablecoins are making headlines as potential payment tools. Giant retailers like Amazon and Walmart have even explored launching their own stablecoins, which could siphon away transactions and the fees that come with them from traditional financial institutions. Beyond affecting interchange income, there is the threat that stablecoins and the accompanying “tokenization” of finance could affect member deposits.

Also consider that artificial intelligence is now in the payment mix. OpenAI's ChatGPT can now facilitate purchases via PayPal without users ever leaving the chat. In other words, your members could be buying things in an AI chat window at midnight with instant payments, all without touching their debit card or online banking. Embedded finance is a hot topic as non-bank companies are weaving financial services seamlessly into apps and devices so that payments happen wherever consumers are, not necessarily in a credit union branch or website.

What does all this mean? It means the stakes have never been higher for credit unions. Members still trust their credit unions, but they also expect the same speed and savvy that big tech delivers. Some credit unions already feel the pressure. We’ve heard from leaders seeing tens of millions in monthly deposit outflows—driven largely by unregulated, non-depository fintechs offering sleek payment experiences. These shifts aren’t just inconvenient. They represent an existential threat to the credit union operating model as we know it. If credit unions don't adapt, we risk becoming the financial equivalent of Blockbuster Video in a Netflix world. But if credit unions do adapt and harness their cooperative strengths and focus on what members truly need, credit unions can remain the go-to place for people to move and manage their money, no matter how the payment landscape shifts.

What’s Changing in Payments (2026 Edition)

Let’s break down a few of the biggest shifts happening in payments right now, and why they matter:

• Instant Payments Go Mainstream: The era of waiting for payments to clear is ending. With FedNow officially live and private real-time rails like RTP, members can pay friends, businesses, or bills at 2 AM on a Sunday and expect it to post immediately. Credit unions will need to meet the demand for instant gratification, 24/7 service, and new products that leverage real-time payments, all while managing liquidity and ensuring those transactions are secure.

• The Rise of Digital Currencies: Not long ago, terms like cryptocurrency and stablecoin sounded niche. Today, regulators and innovators alike are debating how digital currencies might play a role in everyday payments. Stablecoins are particularly in focus. If big firms introduce their own stablecoins for shopping loyalty programs or instant checkouts, credit unions could feel the impact in reduced card usage or deposits. If yields on stablecoins are allowed (they are not right now), member deposits could even migrate to stablecoins. On the flip side, there may be opportunities for credit unions to facilitate bridging traditional accounts with crypto-enabled digital wallets in a way that keeps things safe and beneficial for members. These disruptions in the deposit and wallet space are paralleled by mounting pressure on credit union card programs. Proposed caps on interchange, digital-only issuance models, and potential interest rate restrictions could significantly reshape the economics of credit union card portfolios. The card is no longer just a piece of plastic—it’s part of a broader ecosystem facing headwinds from all sides.

• Fraud as a Design Challenge: Faster payments and digital wallets come with a dark side. In an instant-payments world, there's no float or delay to detect and stop a fraudulent transfer. Fraud prevention must be a core design principle. From AI-driven scams like deepfake voices and texts targeting members to old-school phishing with a new twist, the fraud landscape is evolving alongside payments. We must design member experiences that make safe transactions easy. Think smart alerts, biometric authentication, and member education.

• Embedded Finance Everywhere: More companies outside the financial sector are finding ways to embed payment options directly into their products and services. Whether it's Uber automatically splitting a fare with your friend, or TikTok letting you buy and sell in seconds, these seamless experiences remove friction for consumers. The challenge is that they can also remove credit unions from the conversation. If members can take care of payments in the apps they use daily, will they still see the credit union behind the scenes? The opportunity here is for credit unions to integrate and partner; for instance, ensuring your credit or debit cards are easily loaded into every digital wallet, or teaming up with fintechs so that credit union accounts fuel those sleek new experiences. We want credit unions to be everywhere members are transacting, even if their logo isn't front and center.

Each of these trends comes with both risks and opportunities. The common thread is change, and that can be overwhelming.

How the All Things Payments Center Will Help

Filene's All Things Payments Center is here to turn all this change into something credit unions can act on confidently.

Here’s what you can expect from this Center:

• Unbiased, Research-Backed Insights: We’ll be diving into research on all these emerging trends. You’ll see reports, briefs, and case studies that translate academic research and industry data into plain English, focused on credit union takeaways.

• Answers to Big Questions: Working with Filene’s team and a network of experts, I’ll be seeking answers to the big questions many of you are asking. These are just a few of the critical questions we'll tackle head-on:
  • Where does our credit union stand competitively in the payments space, and what should we prioritize next?
  • Which new payment technologies (e.g., tokenization, contactless, mobile apps, stablecoins) will actually affect our members’ daily lives—and our bottom line?
  • What do members really expect from their payment experiences, and how can credit unions deliver that seamless, secure experience across all channels?

• Actionable Tools and Frameworks: As we move through this three-year journey, we’ll share practical resources designed to help turn knowledge into action, which may include:
  • Guidance to support implementation of faster payments
  • An approach for assessing potential payments partnerships
  • Considerations and strategies for introducing new payment products with minimal friction

• A Community of Learners and Leaders: As we launch All Things Payments, we're also creating a space for credit union professionals to come together around this topic. Through regular cohort calls, webinars, and networking sessions, you'll be able to share your experiences, learn what peers are doing, and collaborate on solutions. The Center will host discussions where we can all candidly talk about what’s working, what isn’t, and what needs to be tried next. My hope is that this becomes a peer network where, for example, a marketing officer from one credit union and a CIO from another can compare notes on rolling out digital wallets and leave with new ideas and contacts.

The All Things Payments Center is your strategic advantage in a chaotic payments landscape. By grounding everything in the credit union ethos, we'll make sure the recommendations make sense for organizations.

Credit Unions Can Lead the Way

Credit unions have a long history of innovating for the people they serve. In fact, we were essentially fintech before fintech was cool, finding creative ways to help the community through co-op branching, shared ATMs, and more. Whether it’s experimenting with P2P payment apps, redesigning the member experience for easier digital payments, or collaborating on new tech, we can and should absolutely lead.

We lead by leveraging the secret sauce of the credit union: the collective spirit of cooperation and member-centered mission. This same strength is fueling the work of other Centers of Excellence at Filene, such as The Next Generation of Member Growth, which explores how younger generations are reshaping financial expectations, and Design for Digital, which focuses on building the digital capabilities credit unions need to meet those expectations. Our work in payments connects directly to these efforts. It intersects with everything from member growth to financial inclusion and supports emerging delivery models through partners like CUSOs and corporates.

A coalition of innovative credit unions have committed as founding sponsors, including Corporate America Credit Union, Corporate Central Credit Union, Desert Financial Credit Union, EastRise Credit Union, Envisant, WSECU, SchoolsFirst FCU, Municipal Credit Union, Lake Michigan Credit Union, Teachers FCU, and Together Credit Union. If your credit union's strategic plan includes delivering a payments strategy and you want to join this list of innovative CUs, reach out to [email protected] to learn more about becoming a sponsor.