FedNow in the News

By David Schmidt

The launch of FedNow, a new instant payments service provided by the Federal Reserve, is all over the news. There are several reasons this is a huge newsworthy event. Although instant payments are one big reason, even more, important is the fact that FedNow is expected to become the primary clearing system for the US banking sector. That means it will replace the way checks are cleared, which was enhanced after 9/11 with the introduction of check images as legal substitutes for the original check. FedNow is also likely to supplant ACH payments, which currently exceed check payments. The following chart provides an overview of this evolution.

It clearly behooves credit executives to stay up-to-date with FedNow’s offering. There has been an acceleration in payments innovation during the past decade, and the launch of FedNow is going to facilitate even more creation as will the ongoing adoption of ISO 20022, which will bring much-needed clarity to remittance details. With that in mind, we have compiled a collection of recent press releases related to FedNow to help you stay informed as well as to illustrate the amount of attention financial institutions and fintechs are investing in the new FedNow platform.

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Press Release by FedNow - 

1. The Federal Reserve announces that its new system for instant payments, the FedNow® Service, is now live 

Press Releases by BusinessWire - 

1. Pidgin Supports Live Transactions on the FedNow® Service, Driving Innovation in the U.S. Payment Infrastructure 

2. CSI Launches Instant Payments Capabilities through the FedNow Service with Illinois-Based INB, N.A. as Early Adopter 

Press Release by ACI WorldWide -

1. ACI Worldwide Supports the FedNow® Service, Advancing U.S. Payment System 

Press Release by Fiserv -

1. Fiserv Supports FedNow® Service with Multiple Financial Institution Clients Live at Launch 

Press Release by PR Underground -

1. OPN Supports the FedNow® Service, Advancing U.S. Payment System