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FedNow, the nation’s second real-time payments network set to debut in late July, says 41 financial institutions, 15 service providers, and the U.S. Department of the Treasury will be ready to send and receive transactions. All 57 have completed certification and testing for FedNow.
The Federal Reserve said in 2019 it would pursue a real-time payments service, eventually joining The Clearing House Payments Co. LLC’s Real Time Payments network that launched in 2017. This initial group of 57 is a subset of the approximately 120 in the FedNow pilot.
Among financial institutions, participants include banking giants like JPMorgan Chase and U.S. Bank, but smaller ones, too, including 1st Bank Yuma in Yuma, Ariz., and Veridian Credit Union, Waterloo, Iowa. Service providers include FIS Inc. and Alacriti, among others.
The Fed previously said the service would launch in July but amended the start date to late July according to a Thursday press release.
Several providers have already announced they completed FedNow testing and certification, including ACI Worldwide Inc., Tyfone Inc., and Jack Henry & Associates Inc.
“We are on track for the FedNow Service launch, with a strong cohort of financial institutions and service providers of all sizes in the process of completing the final round of readiness testing,” Ken Montgomery, first vice president of the Federal Reserve Bank of Boston and FedNow program executive, said in a statement. Initial FedNow use cases include account-to-account transfer, request for payment, bill pay, and others.
TCH and the Fed also are the two national operators for the U.S. automated clearing house payments system.
