InfoBytes Blog
Fed’s FedNow instant-payments platform to launch mid-2023
On August 29, the Federal Reserve Board announced that its FedNow service will launch mid-year 2023, targeting May to July as the production rollout window for the anticipated instant-payments platform. The FedNow pilot program is scheduled to enter technical testing in September with more than 120 organizations taking part. As covered by a Buckley Special Alert, in May, the Fed issued a final rule for its FedNow service that offers more clarity on how the platform will work. According to the Fed, the FedNow service will be accessible to financial institutions of any size to help expand the reach of instant payments to communities nationwide. FedNow pilot program participants “will complete a certification process to ensure operational and messaging readiness and then move into production once the service is launched,” the Fed said, noting that as the pilot program moves into the testing phase, it will engage non-pilot financial institutions and service providers interested in being early adopters.
“Just as the Federal Reserve has made a substantial commitment to our new instant payment infrastructure, we are calling on industry stakeholders to do the same,” Fed Vice Chair Lael Brainard said during a speech at the FedNow Early Adopter Workshop. “The shift to real-time payment infrastructure requires a focused effort, but the shift is inevitable. The time is now for all key stakeholders—financial institutions, core service providers, software companies, and application developers—to devote the resources necessary to support instant payments.”