FedNow℠ Instant Payment Service Is Now Operational

The Federal Reserve's ("Fed") FedNow℠ instant payment service is up and running and can now be used by banking entities and credit unions to instantly transfer money for customers.

In its announcement, the Fed stated that FedNow℠ begins operations with "35 early-adopting banks and credit unions, as well as the U.S. Department of the Treasury's Bureau of the Fiscal Service." The Fed stated that "16 service providers are ready to support payment processing for banks and credit unions." The Fed included a list of the early adopter financial institutions, the financial institutions serving as settlement agents and liquidity providers, and the service providers supporting payment processing.

As previously covered, the FRB adopted final rule amendments modifying Regulation J ("Collection of Checks and Other Items by Federal Reserve Banks and Funds Transfers through Fedwire"), which included establishing the new real-time gross FedNow℠ settlement service regulations.