Federal Reserve Launches FedNow® Service for Instant Payments

WASHINGTON, (VSNewsNetwork.com) - The Federal Reserve unveiled its FedNow® Service, a novel system for instant payments, on Thursday. Open to banks and credit unions of all sizes, FedNow® allows immediate money transfers for their customers, round the clock, throughout the year.

Federal Reserve Chair Jerome H. Powell explained the benefits of the service, stating, “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.” The service promises to enhance convenience and efficiency, with early adoption seen from 35 banks and credit unions, the U.S. Department of the Treasury’s Bureau of the Fiscal Service, and 16 service providers ready to support payment processing.

The FedNow® Service operates alongside other Federal Reserve payment services, and the Federal Reserve is committed to making the service widely available in collaboration with over 9,000 banks and credit unions nationwide. As the service gains traction, it will provide significant benefits such as instant paycheck receipts and just-in-time payments, helping manage cash flows effectively.

Learn more at https://www.frbservices.org/financial-services.

Source: Federal Reserve via