The Federal Reserve recently reported that it officially began onboarding pilot participants onto the FedNow Service, “signaling that the initial testing phase of the FedNow Pilot Program is underway.”
A few organizations have now successfully “connected and delivered test messages over a pilot version of the FedNow Service, marking a key milestone for the service, which remains on course to launch in 2023.”
Nick Stanescu, senior vice president and business executive of the FedNow Service, 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, 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.”
Over the coming months, pilot organizations will “continue onboarding with the service, establishing connectivity and performing technical and operational tasks that will lay the groundwork for full-scale, end-to-end testing later this year.”
Among them are several new organizations that recently “joined the FedNow Pilot Program, including Square Financial Services, Inc. and Q2 Holdings, Inc.”
These organizations satisfied pilot criteria “surrounding instant payments readiness and expressed a desire to participate in early testing.”
In total, the FedNow Pilot Program “now numbers more than 120 organizations.”
Earlier this year, the Federal Reserve announced FedNow Service pricing details “in addition to an online FedNow Service Provider Showcase to connect financial institutions and businesses looking to adopt the FedNow Service with service providers offering instant payments solutions.”
Organizations are “encouraged to join the FedNow Community and visit FedNowExplorer.org for additional news and resources.”
As noted in the update, The Federal Reserve Banks are “developing the FedNow Service to facilitate nationwide reach of instant payment services by financial institutions — regardless of size or geographic location — around the clock, every day of the year.”
Through financial institutions participating in the FedNow Service, businesses and individuals will be able “to send and receive instant payments at any time of day, and recipients will have full access to funds immediately, giving them greater flexibility to manage their money and make time-sensitive payments.”
Access will be provided “through the Federal Reserve’s FedLine® network, which serves more than 10,000 financial institutions directly or through their agents.”
