The FedNow instant payments service saw nearly $17.5 billion in transactions in the third quarter of the year, up from less than $500 million in the second quarter, according to data released by the Federal Reserve today.
The Fed launched its FedNow service for instant payments in July 2023. During Q1 2024, FedNow processed a total of 41,698 payments with a total transaction value of less than $14 million. The service has since seen rapid growth, processing 336,487 payments in Q3, which comes to an average daily volume of 3,657 payments.
During a speech in August, Fed Governor Christopher Waller said nearly 1,000 depository institutions are using FedNow, including some of the largest banks, which “will drive origination volume.”
“Yet we are still at the beginning of a multiyear journey of establishing a ubiquitous network covering the majority of institutions in our country,” Waller said.
