The FedNow Service has seen continued growth in the first weeks after launch as momentum builds across the industry. A total of 108 institutions are now sending and receiving on the network.  

In addition, 21 financial institutions are providing liquidity and settlement services, and 20 service providers are supporting payment processing in the instant payments infrastructure.

While momentum builds, it’s important to clarify key facts about the FedNow Service —both what it is and what it isn’t. Here’s what you need to know:

  • Financial institutions can choose to adopt the FedNow Service on their own or in collaboration with a service provider(s). The Service Provider Showcase on includes more than 100 organizations — payment processors, correspondents, banking operations, customer-facing application providers and many others — to help financial institutions find and connect with organizations that can help them implement the service and enable a variety of use cases for customers.
  • The FedNow Service is not the same as FedACH® Services. Same Day ACH operates during standard business hours and processes and settles in batches at various points throughout the day. With the FedNow Service, payments are cleared and settled transaction by transaction 24 hours a day, seven days a week, and financial institution customers can access those funds immediately.
  • The FedNow Service is not a consumer-facing app. The FedNow Service does not provide an end-user interface or application that financial institutions can use with their own customers. The FedNow Service is a payment infrastructure that financial institutions can leverage to build and offer their own instant payment solutions to their customers.
  • The FedNow Service has fraud management capabilities and security features to help financial institutions protect against threats. Fraud is not new or unique to payments, but the speed and irrevocability of instant payments can produce unique challenges. As more financial institutions prepare to adopt the FedNow Service, it’s important they evaluate and extend their own layered approach to fraud management and consider steps to further protect themselves and their customers. The FedNow Service launched with features such as transaction limits and negative lists to support financial institutions with their own fraud mitigation efforts. Fraud tools available to participants are expected to expand over time as adoption grows and fraud threats change.

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    Four decisions to make before onboarding

    If your community bank is getting ready to implement the FedNow Service, you’ll need to make four key decisions before onboarding:

  • How will you connect – directly via an existing or new FedLine® Solution or through a third-party service provider?
  • Where will you settlein your own Federal Reserve master account or that of a correspondent?
  • How will you participate – will you offer your customers the ability to both send and receive funds or only receive payments?
  • How will you post in real time – have you determined how you’ll make funds available 24x7x365?


    There are resources available to support you as you prepare for instant payments. Visit to learn more or contact your Federal Reserve relationship manager.