FedNowSM Service payment flow video: What you need to know
April 6, 2021
You may already know the Federal Reserve’s FedNow Service will provide a safe and efficient platform that banks, credit unions and others can use to innovate and offer a variety of instant payment use cases for their customers. But do you know how it will work?
This video follows a payment over the FedNow Service from start to finish and shows what financial institutions need to know about their role in the process.
Payments processed over the FedNow Service will settle between financial institutions in real time and end users will have immediate access to money sent to them. Financial institutions that participate in the FedNow Service can meet the evolving needs of their customers and keep pace with the competition. Other benefits include:
- Attracting and retaining customers
- Growing revenue (e.g., transaction fees, fees for new service or product offerings)
- Lowering costs through increased efficiency (e.g., automation and operations)
- Reducing interbank settlement risk
This video is intended for illustration purposes only, and does not reflect final rules or terms associated with transfers through the FedNow Service, which remain under development and may be different from what is presented.