FedNow: Six months of the Fed’s instant payments system
The Federal Reserve’s real-time payments system, the FedNow Service, launched in July with 35 participating institutions. As of December, the number of participants has grown to more than 300 financial institutions – including several credit unions. Here are some recent updates to be aware of:
Fed acknowledges ‘historic’ launch year: As 2023 comes to a close, the FedNow Service has provided an update on where the instant payments network stands nearly six-months after launch. The participating institutions reflect a diverse range of banks and credit unions, ranging in size from under $500 million to over $3 trillion in assets.
“These are still early days for the FedNow Service, and we are pleased with the robust level of adoption over the first few months as we transition from launch phase to standard operations,” said Ken Montgomery, first vice president of the Federal Reserve Bank of Boston and FedNow program executive. “We commend the growing number of financial institutions, service providers and other organizations in the payment ecosystem that are embracing the vast potential of this modern, instant payments system.”
In addition, as demand for instant payments grows, so does the proliferation of new use cases that can leverage them. During the most recent FedNow Service Town Hall webinar, financial institutions and service providers presented innovative examples of leveraging the platform to offer new solutions, solve existing end-user pain points, and improve customer satisfaction.
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