The Federal Reserve Banks recently narrowed the timing of the FedNow Service launch to mid-year 2023, targeting a production rollout of the service in the May to July time frame. This further defines the previously communicated 2023 launch window for the anticipated instant payments service and comes as the FedNow Pilot Program begins technical testing for the service.
“With the FedNow launch date in sight, we are pleased with the collaboration and dedication our pilot participants have brought to advance modern payments in America,” said Esther George, president and CEO of the Federal Reserve Bank of Kansas City and executive sponsor of the FedNow program.
Currently, more than 120 organizations are participating in the FedNow Pilot Program. Recent newcomers include U.S. Bank, Exchange Bank and several payment processors and solution providers, including Alacriti Payments LLC, ECS Fin Inc., Form3 and ModusBox, Inc.
Participants in the FedNow Pilot Program will complete a certification process to ensure operational and messaging readiness and then move into production once the service is launched. As the pilot program begins its testing phase, the Federal Reserve is starting to engage non-pilot financial institutions and service providers interested in being early adopters of the service.
At launch, the FedNow Service will be accessible to financial institutions of any size, helping broaden the reach of instant payments to communities nationwide. Financial institutions participating in the service will be able to provide businesses and consumers with the ability to send and receive instant payments efficiently and securely. Payment recipients will have full access to funds immediately, giving them greater flexibility to manage their money and make time-sensitive payments.
The benefits of instant payments are increasingly important to consumers and businesses, and the ability to provide this service will be critical for financial institutions to remain competitive. Next year, financial institutions will be able to use the FedNow Service as a springboard to provide innovative solutions to their customers.
First Vice President and FedNow Service Program Executive
Federal Reserve Bank of Boston
For more information, view the transcript and video (Off-site) of remarks from Lael Brainard, vice chair of the Federal Reserve. To learn more about the FedNow Service, visit FedNow Explorer (Off-site).
