FedNow real-time payments service will launch between May to July 2023. Financial institutions and service providers interested in being early service adopters can participate in technical testing
The Federal Reserve has revealed the timeframe of the FedNow Service launch which will happen between May to July 2023. Moreover, the FedNow Pilot Program prepares to enter technical testing in September.
At the initial launch, the real-time payment service will support the account-to-account and consumer-to-business bill pay use cases. However, FedNow is use-case agnostic and will be able to support a wide variety of use cases with innovation by the industry. Thus, additional functionality may come in future phases.
The Pilot Program members will complete a certification process to ensure operational and messaging readiness. They’ll move into production as soon as the service launches. As FedNow moves into the testing phase, the Federal Reserve is beginning to engage non-pilot financial institutions and service providers interested in being early service adopters.
Over 120 organizations are already participating in the FedNow Pilot Program. Recent newcomers include U.S. Bank, Exchange Bank, Alacriti Payments LLC, ECS Fin Inc., Form3 and ModusBox, Inc. The participants will be able to provide businesses and consumers with the ability to send and receive instant payments efficiently and securely. Besides, payment recipients will benefit from instant fund settlement, giving them greater flexibility to manage their money and make time-sensitive payments.
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