Water Cooler Talk

FedNow is live: Now the real work begins

The Federal Reserve officially launched its FedNow real-time payment rails on July 20. By all accounts the sun still rose on schedule and life proceeded as normal on July 21.The lack of drama is precisely how the Fed hoped things would play out.

Jenn Day
Nov 8, 2023

Read the original full article from the CUNA here.

Here is a brief summary of the article:

  • The Federal Reserve launched its FedNow real-time payment system on July 20 after four years of development.
  • FedNow is designed to function as a back-office utility and already has 35 financial institutions enabled, including credit unions and corporate credit unions.
  • Real-time payment networks have already been successfully implemented in many countries, with early adoption in the US expected to be concentrated on the business-to-business side.
  • The Clearing House introduced its own real-time payment system, RTP, in late 2017, and four of its owner banks have also signed up for FedNow.
  • The Fed is working with over 100 service providers to develop customer-facing solutions that leverage the new network’s capabilities.
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