FedNow: Getting to Know the New Instant Payment System

The FedNow Service is live. The Federal Reserve’s new instant payment system is up and running after a July 20, 2023, launch. From the Wall Street Journal to TikTok, there has been much media coverage and excitement around the launch of the Fed’s first new payment rail in over four decades. Whether you are a payments expert, enthusiast, skeptic, or critic, or even an average consumer, chances are you have heard of FedNow. But what exactly is it? More important, what does it mean for you?

This impact note provides an overview of FedNow, including basic features, a comparison to other payment systems, instant payment opportunities for financial institutions, payment service providers, consumers, and businesses, and real-time payment strategies.

Companies Mentioned: 

ACI Worldwide, Alacriti, Bank of New York Mellon, FedNow, Finastra, Finzly, FIS, Fiserv, Federal Reserve, Jack Henry, JP Morgan Chase, Open Payment Network, Pidgin, RTP, The Clearing House, U.S. Bank, U.S. Department of the Treasury, Wells Fargo