FedNow

About FedNow

The Federal Reserve launched FedNow in July 2023, providing instant payment services 24 hours a day, 365 days a year. FedNow processes payments in seconds, with final settlement through the Federal Reserve. The service is available to banks and credit unions of all sizes. FedNow competed with the private sector RTP network operated by The Clearing House, which launched in 2017. FedNow adoption was slow initially, with major banks hesitant to join. Critics argued the Fed was competing with private innovation. Supporters argued that only the Fed could ensure universal access to instant payments. The success of FedNow will determine whether the US finally gets real time payments comparable to UPI in India or Pix in Brazil.