FedNow® Service hits new milestone with more than 100 participating organizations
October 03, 2023
The Federal Reserve plans service enhancements as the network gains momentum
CHICAGO — The Federal Reserve announced today that the FedNow Service has experienced strong growth following its launch in July, with 108 institutions now sending and receiving on the network.
In addition, 21 financial institutions are providing liquidity and settlement services, and 20 service providers are supporting payment processing in the instant payments infrastructure.
“The momentum and interest we’re seeing in the FedNow Service in the weeks after launch reflects the noteworthy support from early adopters and underscores the changing U.S. payments landscape,” said Ken Montgomery, first vice president of the Federal Reserve Bank of Boston and FedNow program executive. “We anticipate widespread adoption and ubiquity will build over time, bringing the benefits of instant payments to communities nationwide and improving the way households, businesses and governments send and receive payments.”
As participation grows, the Federal Reserve continues to prioritize enhancements to the service and plans to introduce new features and functionality in the coming months. Updates will include select risk management and operational enhancements of the service geared toward providing additional fraud prevention tools and straightforward access to important account and transaction information.
The Federal Reserve also plans to introduce a tech-centric developer resource in the coming months allowing financial institution participants to access documentation such as the recently updated operating procedures, technical specifications, as well as code and message samples to assist with service implementation.
“This is an exciting time, because it marks the beginning of our ongoing enhancements to the FedNow Service,” said Nick Stanescu, senior vice president and FedNow business executive. “Instant payments are a strategic offering for any financial institution or service provider, so we want to make them as accessible as possible.”
With future enhancements underway, value-add features were also introduced at launch to support early adopters from the onset, including a digital onboarding solution to help organizations and internal teams automate form signing and track progress through the entire onboarding process. The service also launched with fraud mitigation capabilities, including the ability to set negative lists and identify and investigate instances of fraud or errors.
About the FedNow Service
The Federal Reserve Banks developed the FedNow Service to facilitate nationwide reach of instant payment services by financial institutions — regardless of size or geographic location — around the clock, every day of the year. Through financial institutions participating in the FedNow Service, businesses and individuals can send and receive instant payments at any time of day, and recipients have full access to funds immediately, giving them greater flexibility to manage their money and make time-sensitive payments. Access is provided through the Federal Reserve’s FedLine network, which serves 9,000 financial institutions directly or through their agents. For more information, visit FedNowExplorer.org (Off-site).
Jean Tate (Federal Reserve System) P: (404) 452-3506