The Federal Reserve announced the launch of its real time payment system, FedNow, is set for July, with preparations expected to begin in early April.
According to a statement by the Fed, it will begin the formal certification of participants for launch of the service the first week of April. Early adopters will complete a customer testing and certification program, informed by feedback from the FedNow pilot program – which began in 2021 – to prepare for sending live transactions through the system. The certification program includes a comprehensive testing curriculum with defined expectations for operational readiness and network experience.
In June, the Fed and certified participants will conduct production validation activities to confirm readiness for the July launch.
“We couldn’t be more excited about the forthcoming FedNow launch, which will enable every participating financial institution, the smallest to the largest and from all corners of the country, to offer a modern instant payment solution,” Ken Montgomery, first vice president of the Federal Reserve Bank of Boston and FedNow program executive, said. “With the launch drawing near, we urge financial institutions and their industry partners to move full steam ahead with preparations to join the FedNow Service.”
In addition to preparing early adopters for the July launch, the Federal Reserve continues to engage a range of financial institutions and service providers to complete the testing and certification program and implement the service throughout 2023 and beyond. Montgomery noted availability of the service is just the beginning, and growing the network of participating financial institutions will be key to increasing the availability of instant payments for consumers and businesses across the country.
“With the FedNow Service, the Federal Reserve is creating a leading-edge payments system that is resilient, adaptive, and accessible,” said Tom Barkin, president of the Federal Reserve Bank of Richmond and FedNow Program executive sponsor. “The launch reflects an important milestone in the journey to help financial institutions serve customer needs for instant payments to better support nearly every aspect of our economy.”