At launch, the service has 35 participating banks and credit unions, 16 participating service providers, as well as the Department of the Treasury’s Bureau of Financial Services. FedNow will act as an interbank payment system alongside existing payment services including FedWire and FedACH.
It is our view that the FedNow service is a natural progression of payments technology. The creation of the network was the culmination of years of work, and it will likely take a number of years more for the service to become ubiquitous enough to have a significant impact on the overall payments landscape.
Like most technological changes, this disruption can be uncomfortable and leave us with plenty of questions. We understand and appreciate those questions and concerns, and recommend visiting the Fed’s FAQ resources, as they address a number of concerns we have heard.
Main contributor - Michael Gourd
Original report - Federal Reserve announces new service FedNow, 27 July 2023.