One year after its launch, the FedNow Service has surpassed 900 participating financial institutions — up from 35 that were live on the first day.
The service, designed to meet the needs of U.S. financial institutions of all sizes, comprises a diverse set of participants ranging from under $500 million to more than $3 trillion in asset size. Additionally, community banks and credit unions make up 78% of the total number of participants.
“We are encouraged by the remarkable momentum of the FedNow Service and are excited to see individuals and businesses start to reap the benefits of instant payments, such as gaining more control over cash flow and precisely timing payments,” said Mark Gould, chief payments executive of Federal Reserve Financial Services.
A look back at the year
In addition to the FedNow Service launching last year, other highlights include:
- Use cases are gaining traction, including digital wallet funding and defunding, instant payroll, bill payment, real estate transactions, microdeposit account verification, online marketplace seller payouts and more.
- Release of the FedNow DevRel online resource to support application developers and technologists as they build instant payment solutions via the service.
- Introduction of the FedNow User Group to promote collaboration among Federal Reserve Financial Services and participants to inform future innovations within the service.
A glimpse into the future
As the FedNow Service enters its second year, the Federal Reserve is focused on growing the FedNow Service network, ensuring a smooth, efficient onboarding process for participants, and building new features and functionality to further enhance the service.
Learn more
Get more details about the current state of the FedNow Service and what’s next for the instant payments network in this new article on FedNowExplorer.org (Off-site).
