Federal Reserve Officially Launches Instant Payments System FedNow
By Nik Hoffman The Federal Reserve has launched its instant payment system, called the FedNow® Service, which allows banks and credit unions to conduct instantaneous money transfers for their customers.
The system operates 24/7, 365 days a year. Currently, 35 banks and credit unions, along with the U.S. Department of the Treasury's Bureau of the Fiscal Service, can handle payments through FedNow. Additionally, 16 service providers will offer payment processing support to these financial institutions.
Federal Reserve Chair Jerome Powell stated that the FedNow Service aims to make everyday payments faster and more convenient, allowing individuals to receive paychecks immediately and businesses to access funds instantly upon invoice payment. However, the Fed clarified that the service is not a digital currency or a central bank digital currency (CBDC) and is not intended to replace cash or any other forms of payment.
For more information and a list of early adopters with instant payment capabilities, interested parties can visit the Federal Reserve Financial Services website. | 