The Federal Reserve announces that its new system for instant payments, the FedNow® Service, is now live
The Federal Reserve on Thursday announced that its new system for instant payments, the FedNow® Service, is now live. Banks and credit unions of all sizes can sign up and use this tool to instantly transfer money for their customers, any time of the day, on any day of the year.
“The Federal Reserve built the FedNow Service to help make everyday payments over the coming years faster and more convenient,” said Federal Reserve Chair Jerome H. Powell. “Over time, as more banks choose to use this new tool, the benefits to individuals and businesses will include enabling a person to immediately receive a paycheck, or a company to instantly access funds when an invoice is paid.”
To start, 35 early-adopting banks and credit unions, as well as the U.S. Department of the Treasury’s Bureau of the Fiscal Service, are ready with instant payments capabilities via the FedNow Service. In addition, 16 service providers are ready to support payment processing for banks and credit unions.
When fully available, instant payments will provide substantial benefits for consumers and businesses, such as when rapid access to funds is useful, or when just-in-time payments help manage cash flows in bank accounts. For example, individuals can instantly receive their paychecks and use them the same day, and small businesses can more efficiently manage cash flows without processing delays. Over the coming years, customers of banks and credit unions that sign up for the service should be able to use their financial institution’s mobile app, website, and other interfaces to send instant payments quickly and securely.
As an interbank payment system, the FedNow Service operates alongside other longstanding Federal Reserve payment services such as Fedwire® and FedACH®. The Federal Reserve is committed to working with the more than 9,000 banks and credit unions across the country to support the widespread availability of this service for their customers over time.
A list of early adopters with instant payment capabilities follows below. Additional information is available on the Federal Reserve Financial Services website.
Early Adopter Financial Institutions
1st Source Bank
Adyen
Avidia Bank
BNY Mellon
Bridge Community Bank
Bryant Bank
Community Bank of the Bay
Consumers Cooperative Credit Union
Corporate America Credit Union
Eastern Corporate Federal Credit Union
First Internet Bank of Indiana
Global Innovations Bank
HawaiiUSA Federal Credit Union
INB
JPMorgan Chase
Mediapolis Savings Bank
North American Banking Company
Peoples Bank
Pima Federal Credit Union
Salem Five Bank
Star One Credit Union
United Bankers' Bank
U.S. Bank
U.S. Department of the Treasury’s Bureau of the Fiscal Service
Veridian Credit Union
Wells Fargo Bank, N.A.
Financial Institutions Serving as Settlement Agents and Liquidity Providers
Alloya Corporate Federal Credit Union
Atlantic Community Bankers Bank
BNY Mellon
Bankers' Bank of the West
Catalyst Corporate Federal Credit Union
Community Bankers' Bank
Millennium Corporate Credit Union
PCBB
Quad City Bank & Trust
The Bankers Bank
Vizo Financial Corporate Credit Union
Service Providers Supporting Payment Processing for Financial Institutions
ACI Worldwide Corp.
Alacriti
Aptys Solutions
BNY Mellon
CSI
ECS Fin Inc.
Finastra
Finzly
FIS
Fiserv Solutions, LLC (Fiserv NOW, Fiserv Payments Exchange)
FPS Gold
Jack Henry
Juniper Payments, a PSCU Company
Open Payment Network
Pidgin, Inc.
Temenos
Vertifi Software, LLC