More than 100 financial institutions and service providers are now using FedNow, the instant payment system the Federal Reserve launched in July.
The service is already supporting 108 institutions sending and receiving payments on the network, as well as 21 financial institutions providing liquidity and settlement services and 20 service providers supporting payment processing.
It is designed to allow both businesses and individuals to send and receive money instantly.
The service’s success is ultimately dependent on widespread adoption across economic sectors. As more organizations sign up, their customers will be able to use their institution’s app or website to send instant payments to an ever-wider range of recipients.
The service launched with 35 banks and credit unions already signed up, including JPMorgan Chase, BNY Mellon and the US Department of the Treasury’s Bureau of the Fiscal Service.
Ken Montgomery, FedNow program executive, said: “We anticipate widespread adoption and ubiquity will build over time, bringing the benefits of instant payments to communities nationwide and improving the way households, businesses and governments send and receive payments.”
The Federal Reserve has announced it will introduce further features, including additional fraud prevention tools, in the coming months.
It will also launch a tech-centric developer resource to provide participants with code and message samples to help them implement services and adhere to the technical specifications.
The Federal Reserve issued market practices for the request for payment (RFP) feature of FedNow. The recommendations were designed to standardize RFP implementation across the industry.
Following FedNow’s launch, Fintech company Alacriti was one of the first to complete the FedNow service certification, allowing banks and credit unions to use its payment hub for live transactions.