Federal Reserve Financial Services (FRFS) introduced the new FedNow User Group to continue promoting collaboration among the 607 participating financial institutions and their service providers on the FedNow Service network.
The FedNow User Group aims to “facilitate regular engagement between FRFS and FedNow participants to promote innovation and inform the continued evolution of the service.”
Mark Gould, chief payments executive for Federal Reserve Financial Services, said:
“The strong adoption and engagement surrounding the FedNow Service reflects our collaboration with the industry since day one, and this remains a priority as we pursue our shared mission of ubiquitous availability of instant payments. This new user group will provide institutions on the network and service providers who support them the opportunity to advise on new developments that further enhance the value of the FedNow Service for all participants.”
Following the service launch in July 2023 with 35 participating institutions, FedNow Service adoption and network volume “continues to gain traction as participants enable instant payment processes, identify in-demand use cases, and raise awareness of instant payment products and services among their customers.”
Through the FedNow User Group, “all participating financial institutions and their service providers can receive a detailed look at ongoing service enhancements and share feedback to inform its future development via working groups, roundtables and webinars.”
The FedNow User Group also focuses “on identifying innovative use cases to serve businesses and consumers seeking faster and more efficient ways to send and receive payments to meet a variety of needs.”
Use cases currently enabled by FedNow participants “are expanding and include account-to-account payments, digital wallet funding, instant insurance disbursements and business-to-business payments.”
As noted in the update, the Federal Reserve Banks developed 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 can send and receive instant payments at any time of day, and recipients have full access to funds immediately, giving them greater flexibility to manage their money and make time-sensitive payments. Access is provided through the Federal Reserve’s FedLine® network, which serves more than 9,000 financial institutions directly or through their agents.”
