Fed launches long-awaited instant payments service, modernizing system

The U.S. Federal Reserve has officially introduced a highly-anticipated service aimed at modernizing the country’s payment system. This service, called “FedNow,” will eventually enable everyday Americans to send and receive funds within seconds, 24 hours a day, seven days a week, as announced by the central bank on Thursday.

Developed since 2019, FedNow aims to eliminate the several-day delay typically experienced in settling cash transfers, aligning the U.S. with other countries such as the United Kingdom, India, Brazil, and the European Union, where similar services have been operational for years.

FedNow’s launch includes 41 banks and 15 certified service providers, ranging from community banks to major lenders like JPMorgan Chase (JPM.N), Bank of New York Mellon (BK.N), and US Bancorp (USB.N). The Federal Reserve plans to onboard additional banks and credit unions throughout the current year.

As of Thursday, the Federal Reserve reported that 35 banks and credit unions were already utilizing the service, along with the Treasury Department’s Bureau of Fiscal Service.

Doing Digital Fintech

Related Content

International transfers from card to card with IDBank VISA cards

If you are an IDBank Visa card holder, you...

Byblos Bank Armenia donates AMD 5 million to Health Fund for Children of Armenia

Byblos Bank Armenia has donated AMD 5 million to...

Idplus Bonuses in Idram&IDBank Application

We know that you were waiting for this moment:...