Federal Reserve Banks will develop an around-the-clock real-time payment and settlement service, called the FedNow Service, to support faster payments in the United States.
Federal Reserve Board Governor Lael Brainard announced and outlined the plan during remarks Aug. 5 at the Kansas City Fed’s head office. Brainard said the Board expects FedNow to be available in 2023 or 2024.
“Everyone deserves the same ability to make and receive payments immediately and securely, and every bank deserves the same opportunity to offer that service to its community,” Brainard said. “FedNow will permit banks of every size in every community across the country to provide real-time payments to their customers.”
The rapid evolution of technology presents a pivotal opportunity for the Federal Reserve and the payment industry to modernize the nation’s payment system and establish a safe and efficient foundation for the future. Faster payment services enable the near-instantaneous transfer of funds day and night, weekends and weekdays. The Federal Reserve believes these services have the potential to become widely used and to yield economic benefits for individuals and businesses by providing them with more flexibility to manage their money and make time-sensitive payments.
Since its founding more than a century ago, the Federal Reserve has provided payment and settlement services, alongside and in cooperation with the private sector, as part of its core function of promoting an accessible, safe and efficient U.S. payment system. The Board of Governors is accepting public comments on the FedNow Service until Nov. 7. (item OP-1625).
View External Linkadditional details about the development of FedNow.