Federal Reserve Launches System for Instant Payments

July 20, 2023

The Federal Reserve recently announced that its new system for instant payments, the FedNow® Service, is now live.

Banks and credit unions of all sizes can sign up and use the tool to instantly transfer money for their customers at any time of day on any day of the year. Thirty-five early-adopting banks and credit unions, as well as the U.S. Department of the Treasury's Bureau of the Fiscal Service, are ready with instant payments capabilities via the FedNow Service. In addition, 16 service providers are ready to support payment processing for banks and credit unions.

The Federal Reserve said the new tool is intended to help make everyday payments over the coming years faster and more convenient. In the future, the service will enable a person to immediately receive a paycheck or a company to instantly access funds when an invoice is paid. Over the coming years, customers of banks and credit unions that sign up for the service should be able to use their financial institution's mobile app, website and other interfaces to send instant payments quickly and securely.

As an interbank payment system, the FedNow Service operates alongside other longstanding Federal Reserve payment services such as Fedwire® and FedACH®.

For more information, see the Federal Reserve Financial Services website.