FedNow Service Surpasses 100 Participants Since July Launch

More than 100 institutions are now actively participating on the Federal Reserve’s FedNow® Service network, which launched in July.

There are now 108 financial institutions sending and receiving on the network, 21 institutions providing liquidity and settlement services, and 20 service providers supporting payment processing in the instant payments infrastructure, the Federal Reserve said in a Tuesday (Oct. 3) press release.

Ken Montgomery, first vice president of the Federal Reserve Bank of Boston and FedNow program executive, said in the release: “The momentum and interest we’re seeing in the FedNow Service in the weeks after launch reflects the noteworthy support from early adopters and underscores the changing U.S. payments landscape.”

In response to the growing participation, the Federal Reserve is committed to adding ongoing enhancements, according to the release. Over the next few months, the FedNow Service plans to introduce new features and functionalities that will provide additional fraud prevention tools and easier access to crucial account and transaction information. These updates will include risk management and operational enhancements.

To further support financial institutions and service providers, the Federal Reserve aims to launch a tech-centric developer resource in the near future, the release said. This resource will provide participants with access to essential documentation such as operating procedures, technical specifications, code samples and message samples.

These enhancements will join the value-added features that were introduced at launch to support early adopters, per the release. These features include a digital onboarding solution that automates form signing and tracks progress throughout the onboarding process. Additionally, the service provides fraud mitigation capabilities, empowering organizations to establish negative lists and identify instances of fraud or errors. 

Nick Stanescu, senior vice president and business executive of the FedNow Service at the Federal Reserve Bank of Boston, said in the release: “Instant payments are a strategic offering for any financial institution or service provider, so we want to make them as accessible as possible.”

Among those who have joined the FedNow Service are Cross River Bank and Plaid, which said on Sept. 18 that they have joined the network to widen customers’ instant payment access.

“When enabled, the interoperable offering from Cross River means consumers and businesses can count on efficient, secure and reliable money movement, such as when managing their funds, paying bills, receiving payouts and avoiding late fees,” Cross River Bank said.