FedNow to launch late July with early adopters JPMorgan, Wells Fargo, others
The FedNow real-time payment system is set for a late July launch and has signed on 57 financial institutions and service providers, including JPMorgan Chase (NYSE:JPM), Wells Fargo (NYSE:WFC), U.S. Bank (NYSE:USB), Fiserv (NYSE:FI), and Jack Henry (NASDAQ:JKHY), the Federal Reserve said Thursday.
Other publicly traded participants and service providers that joined as early adopters are: BNY Mellon (NYSE:BK), ACI Worldwide (NASDAQ:ACIW), FIS (NYSE:FIS), Adyen (OTCPK:ADYEY) (OTCPK:ADYYF), Malaga Bank (OTCPK:MLGF), Nicolet National Bank (NYSE:NIC), and First Internet Bank of Indiana (NASDAQ:INBK), PCBB (OTCPK:PCBB), and Temenos (OTCPK:TMNSF) (OTCPK:TMSNY).
The Federal Reserve statement didn't specify the date that the instant payment network will launch. "We are on track for the FedNow Service launch, with a strong cohort of financial institutions and service providers of all sizes in the process of completing the final round of readiness testing," said Ken Montgomery, first vice president of the Federal Reserve Bank of Boston and FedNow program executive.
The early adopters include 41 financial institutions participating as senders, receivers, and/or correspondents supporting settlement, 15 service providers processing on behalf of participants, and the U.S. Department of the Treasury.
Over time, the financial institutions are expected to adopt and build on the FedNow Service with an aim to offer new instant payments services to their customers. The platform is intended to support such use cases as account-to-account transfer, request for payment, bill pay, and others, the Fed said.
The central bank is also working with and onboarding financial institutions that plan to join later in 2023 and beyond. The network aims to eventually reach all 10,000 U.S. financial institutions.
The launch date narrows the expected timeframe for FedNow. In March, the Fed said the platform would start in July.
PayPal Holdings (PYPL) slipped 0.4% in Thursday afternoon trading, and Block (SQ) fell 0.9%.
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