The Federal Reserve said today that its FedNow service will launch midyear 2023, targeting May to July as the production rollout window for the anticipated instant payments service. The pilot program is slated to enter technical testing next month.
More than 120 organizations are taking part in the pilot. FedNow will be accessible to financial institutions of any size, and participants will be able to provide businesses and consumers with the ability to send and receive instant payments efficiently and securely, and payment recipients will have full access to funds immediately, according to the Fed.
“The Federal Reserve has made a substantial commitment to the FedNow platform, which has benefited from the innovative technologies and approaches proven by global technology companies that are vital for today’s always-on digital economy,” Fed Vice Chair Lael Brainard said today during an address to a FedNow Early Adopter Workshop. “Our cloud-first design, unique among central bank instant payment services, positions us for the future by enabling not only the throughput and scalability required for high-volume retail transactions but also broad geographic points of resiliency to ensure continuous service.”
Participants in the FedNow pilot will complete a certification process to ensure operational and messaging readiness and then move into production once the service is launched. As the pilot program moves into the testing phase, the Fed will engage nonpilot financial institutions and service providers interested in being early adopters.