Federal Reserve announces that its new system for instant payments, the Fed Now® Service, is now live

The Board of Governors of the Federal Reserve System (FED) has published a press statement to inform that on July 20, 2023, it has finally launched its FedNow℠ Service – the FED’s 24/7 interbank settlement service with clearing functionality to support instant payments in the United States.
At this point in time, 35 early-adopting banks and credit unions, along with the U.S. Department of the Treasury’s Bureau of the Fiscal Service, are equipped with instant payments capabilities and are actively participating in the FedNow℠ Service. Additionally, there are 16 service providers ready to „support payment processing for banks and credit unions“.
When fully available, this system will offer significant advantages for consumers and businesses of participating institutions. For instance, individuals can receive their paychecks instantly and use the money on the same day, while businesses can transfer or receive payment instantaneously and so efficiently manage their cash flows. Over time, customers of banks and credit unions that participate in the service should be able to utilize their financial institutions‘ mobile app, website, and other interfaces for swift and secure instant payment transfers.
It’s worth noting that the FedNow Service operates alongside other well-established Federal Reserve payment services like Fedwire® and FedACH®.
The FED concludes by noting that „banks and credit unions of all sizes can sign up and use this tool to instantly transfer money for their customers“ and that it seeks to engage with all 9,000+ institutions in an effort to make instant payments available to all people and businesses in the U.S.