Federal Reserve officially launched FedNow instant payment system

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in one Announcement On Thursday morning, the Federal Reserve revealed that its instant payment system, the FedNow® service, has officially gone live. The tool aims to empower banks and credit unions of all sizes to facilitate instant money transfers for their customers. The Federal Reserve claims FedNow transactions can be executed 24/7, 365 days of the year.

To begin with, 35 banks and credit unions, along with the U.S. Treasury Department’s Bureau of Fiscal Services, are already equipped to handle payments through the FedNow service. In addition, a range of 16 service providers are set to provide payment processing support for banks and credit unions.

“The Federal Reserve created the Fed Now service to help make everyday payments faster and more convenient for years to come,” said Jerome Powell, Federal Reserve Chairman. “Over time, as more banks choose to use this new tool, the benefits to individuals and businesses will include enabling an individual to receive a pay check immediately, or a company being able to access funds immediately when an invoice is paid.”

When asked whether the FedNow service is attempting to replace cash, and whether or not it is a central bank digital currency (CBDC), the Federal Reservewhere did it go “No. The FedNow service is not related to digital currency. The FedNow service is a payment service that the Federal Reserve is making available to banks and credit unions to transfer funds for their customers. It is, like other Federal Reserve payment services, such as FedWire and FedACH. The FedNow service is neither a form of money nor a step towards eliminating any form of payment, including cash.”

A detailed list of early adopters already equipped with instant payment capabilities can be found attacheddocument, More information can be found at Federal Reserve Financial Services Website,