Federal Reserve announces FedNow Service 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. 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. Among the early adopter financial institutions are BNY Mellon (BK), JPMorgan Chase (JPM), U.S. Bank (USB), and Wells Fargo (WFC). Service providers supporting payment processing for financial institutions include ACI Worldwide (ACIW), BNY Mellon, FIS (FIS), Fiserv Solutions (FISV), and Jack Henry (JKHY). Other publicly traded companies in the space include Visa (V) and MasterCard (MA).