History of FedNow in Timeline

FedNow, launched on July 20, 2023, is a US instant payment platform developed by the Federal Reserve. This service facilitates businesses and individuals to send and receive money instantly. Banks can leverage the FedNow platform to develop their own financial products. By 2024, it was reported that a significant number of banks and credit unions had adopted the service.

2017: Real-Time Payments (RTP) Launch

In 2017, The Clearing House Payments Company launched Real Time Payments (RTP), a privately owned instant payment system available to all US financial institutions.

2018: European Central Bank Launches TIPS

The European Central Bank launched TIPS, its own instant payment settlement system, in 2018.

2020: Brainard's Announcement of FedNow

In 2020, Lael Brainard announced the Federal Reserve's plan to introduce FedNow, describing it as a neutral platform for private sector innovation in instant payment services.

April 2023: FedNow Certification Begins

In April 2023, FedNow initiated the formal certification process for institutions participating in the program.

July 2023: Moody's Report on FedNow Impact

In July 2023, Moody's Investor Service released a report anticipating potential benefits and drawbacks of FedNow, including gains for consumers and businesses, but also revenue declines for existing payment providers and potential challenges for banks adapting to the new system.

July 2023: FedNow Launch and Operational Details

July 2023 marked the official launch of FedNow, operating 24/7, unlike the older FedACH system. The transaction cost for financial institutions was set at $0.043 per transaction.

July 20, 2023: FedNow Launches

On July 20, 2023, the Federal Reserve officially launched FedNow, its instant payment service, enabling individuals and businesses to send and receive money instantly.