The US Federal Reserve Board of Governors said in a statement on Thursday that they have officially launched its FedNow instant payment service, which will initially be open to banks and credit unions as the system expands
WASHINGTON (Pakistan Point News / Sputnik - 20th July, 2023) The US Federal Reserve Board of Governors said in a statement on Thursday that they have officially launched its FedNow instant payment service, which will initially be open to banks and credit unions as the system expands.
"The Federal Reserve on Thursday announced that its new system for instant payments, the FedNow Service, is now live. Banks and credit unions of all sizes can sign up and use this tool to instantly transfer money for their customers, any time of the day, on any day of the year," the statement said.
As more banks adopt the system, more businesses and individuals will be able to instantly access funds or receive a paycheck, Federal Reserve Chair Jerome Powell said in the statement.
The service aims to make everyday payments faster and more convenient in the coming years, Powell said.
The system will start with 35 early-adopting banks and credit unions, as well as the US Treasury Department's Bureau of Fiscal Service, having instant payment capabilities through the service, the statement said.
Moreover, 16 service providers are prepared to support payment processing for banks and credit unions, the statement said.
In the future, bank and credit union customers that sign up for the service should be able to use their financial institutions' own apps and websites to securely send instant payments, the statement said.
The interbank payment system will operate alongside other Federal Reserve payment services, including Fedwire and FedACH, the statement added.
Initial participating financial institutions include branches of JPMorgan Chase, Wells Fargo and US Bank.
