After a long wait, FedNow, the instant payments service from the Federal Reserve Board, launched on July 20 after first being announced back in 2019. It will enable real-time clearing and settlement of payments 24 hours a day, 365 days a year and is designed to help lay the groundwork for the modernisation of the US financial services industry.
“With the FedNow Service, the Federal Reserve is creating a leading-edge payments system that is resilient, adaptive, and accessible,” said Tom Barkin, president of the Federal Reserve Bank of Richmond and FedNow Program executive sponsor. “The launch reflects an important milestone in the journey to help financial institutions serve customer needs for instant payments to better support nearly every aspect of our economy.”
