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After announcing participants in the FedNow Service's pilot program last week, the Federal Reserve yesterday released updated launch timing, indicating the Fed's real-time payments system will be ready in 2023.

NAFCU has previously shared with the Fed ways in which credit unions and their members would benefit from affordable faster payments capabilities and has encouraged an accelerated launch. 

In a release, the Fed said it "is taking a phased approach to expedite bringing the FedNow Service to market" as the industry has shown growing demand for the service.

The initial launch is set to include core clearing and settlement functionality, with other features such as a request-for-payment capability and tools to support participants in their handling of payment inquiries, reconcilements, and certain exceptions. The Fed will continue to review the service and augment and enhance features in subsequent releases as needed.

As the pilot program gets underway, participants are set to engage in three phases: Advisory, testing, and closed-loop production.

Stay tuned to NAFCU Today for future updates on the FedNow Service's progress and launch timeline.