Capital One and Citigroup Set to Integrate with FedNow System

In a move that signals the growing adoption of real-time payment systems, major U.S. banks Capital One and Citigroup have announced their plans to join the Federal Reserve's instant payments network, FedNow.

Both banks have confirmed that they are in the process of integrating with the system, which enables instant payment settlements, contrasting with the traditional banking system's multi-day clearance process.

Since its launch in July 2023, FedNow has onboarded around 900 financial institutions, but some of the nation's largest banks, including Capital One and Citigroup, have not yet connected to the system.

A Capital One spokesperson explained, "Capital One is planning to participate in FedNow and will be rolling it out to customers in the near future." Citigroup echoed this sentiment, with a representative stating, "We are actively engaged in the development to join FedNow in the near future."

As FedNow continues to expand, it is expected that more large banks will follow suit, joining the system to stay competitive in the rapidly evolving payments landscape. The Federal Reserve's goal of reaching 8,000 financial institutions with FedNow remains ambitious, but the participation of major banks like Capital One and Citigroup could accelerate the system's adoption across the industry.