Instant Payments Service FedNow by Federal Reserve Goes Live

The Federal Reserve announced on Thursday (July 20) the launch of its new system for instant payments, the FedNow Service. The new offering enables participating banks and credit unions to send and receive transactions within seconds on behalf of their customers — 24 hours a day, seven days a week.

"The Federal Reserve built the FedNow Service to help make everyday payments over the coming years faster and more convenient," said Federal Reserve Chair Jerome H. Powell. "Over time, as more banks choose to use this new tool, the benefits to individuals and businesses will include enabling a person to immediately receive a paycheck, or a company to instantly access funds when an invoice is paid."

According to the official press release, customers of banks and credit unions that sign up for the instant payments service are expected to use their financial institution's mobile app, website, and other interfaces to send instant payments quickly and securely over the coming years.

Currently, participating financial institutions that are currently live on the FedNow Service total 26, including BNY Mellon, JPMorgan Chase, U.S. Bank, Wells Fargo Bank, N.A. and U.S. Department of the Treasury’s Bureau of the Fiscal Service.

The number of financial institutions serving as settlement and liquidity providers is 11, such as BNY Mellon and Vizo Financial Corporate Credit Union.

Certified service providers total 17, including ACI Worldwide Corp, BNY Mellon, FIS and Temenos.

Moreover, Fazzaco has noticed a heated debate about the FedNow Service among the payment, the crypto industries, and politicians as well. Please see:

Listen to the Article: Discussions on FedNow Heat Up as It Schedules Debut in Late July​