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Federal Reserve to launch FedNow payment network mid-2023
Federal Reserve Gov. Michelle Bowman announced Wednesday that the Fed intends to launch its instant payment network – FedNow – by mid-2023, calling implementation a “high priority.”
The Fed described FedNow as a service that will “provide interbank clearing and settlement that enables funds to be transferred from the account of a sender to the account of a receiver in near real-time and at any time, any day of the year.”
In addition, the Fed noted that “depository institutions and their service providers will be able to build on this fundamental capability to offer value-added services to their customers.”
NAFCU has previously worked with the Federal Reserve to develop FedNow as a secure and cost-effective platform for real time payments and has consistently advocated for the Fed to play an operational role in the faster payments landscape. NAFCU has also observed in recent letters to the Federal Reserve and Treasury that FedNow would serve as a better alternative than central bank digital currency for promoting future payments innovation.
As the planned launch of FedNow approaches, NAFCU has also encouraged the Fed to educate the industry about the service ahead of launch. Stay tuned to NAFCU Today for future updates on the FedNow Service's progress and launch timeline.