The Federal Reserve has started onboarding the first participants to the FedNow Service pilot program, beginning the instant payment service’s initial testing phase, according to a Monday (May 2) press release emailed to PYMNTS. FedNow is on track to roll out next year.
Over 120 organizations are taking part in the program, and some have already had success connecting to the test version of the service and delivering trial messages, the release stated.
“The FedNow Service pilot participants, including financial institutions of all sizes, processors and correspondents, have been working hard at every step of this journey,” Nick Stanescu, senior vice president and business executive of the FedNow Service, said in the release. “Though much work remains, this progress sets the stage for thousands of financial institutions to be up and running with instant payments in the near future, including those that work with third-party payment providers.”
See also: Fed Releases FedNow Pricing Schedule
The goal of the trial run is to establish seamless connectivity and ensure that technical and operational functionality is ready for full end-to-end testing later this year, according to the release.
Several new organizations have joined the pilot program, including Square Financial Services and Q2 Holdings, the release stated. To be part of the pilot, both companies had to meet requirements for instant payment capability in addition to other factors. Pilot organizations will continue to onboard with the service over the next few months.
Read also: FedNow’s Progress on Instant Payments May Weaken Case for Digital Dollar
The FedNow Service is being launched by Federal Reserve Banks to bring instant payments to financial institutions (FIs) across the United States regardless of their size. FedNow aims to enable businesses and individuals to send and receive money immediately at any time.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More