Payments

Federal Reserve readies FedNow instant payment service

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August 31, 2022

The Federal Reserve Banks have narrowed the timing of the FedNow Service launch to mid-year 2023, specifically targeting a production rollout of the service in the May to July timeframe, according to a press release.

This further defines the previously communicated 2023 launch window for the anticipated instant payments service and comes as the FedNow pilot program prepares to enter technical testing for the service starting in September.

Currently, more than 120 organizations participate in the FedNow pilot program, including U.S. Bank, Exchange Bank and several payment processors and solution providers, including Alacriti Payments LLC, ECS Fin Inc., Form3 and ModusBox, Inc.

The FedNow Service will be accessible to financial institutions of any size, helping broaden the reach of instant payments to communities nationwide.

Payment recipients will have full access to funds immediately, giving them greater flexibility to manage their money and make time-sensitive payments.

Access will be provided through the Federal Reserve's FedLine network, which serves more than 10,000 financial institutions directly or through their agents.