These days, people expect payments to move quickly and a number of payment networks are responding to this demand. How will the FedNow Service fit into the payments ecosystem and how will it support the development of safe, efficient and accessible instant payment services?
Similar to several existing faster payment networks, the FedNow Service will allow financial institutions to enable customers to send and receive money in seconds. Unlike many of these services, the FedNow Service will clear and settle funds between financial institutions in real time. The Clearing House’s RTP® network is currently the only instant payments service offering this capability. The FedNow Service will provide choice to the market, generating competition, promoting resiliency and fostering nationwide reach.
The FedNow Service will be an infrastructure financial institutions and the broader payment ecosystem can use as a springboard for innovation to develop instant payment use cases and services.
“RTP” is a registered trademark of The Clearing House.