IMPORTANT POINTS:
- JPMorgan Chase and 40 other US banks are piloting FedNow, the Fed’s new instant payment infrastructure.
- The official launch is scheduled for the end of July, after banks and service providers finish pilot testing.
- The goal of FedNow is to enable instant payments for businesses and individuals at any time.
Banking giant JPMorgan Chase and 40 other US banks are testing the Federal Reserve’s new instant payments infrastructure called FedNow.
According to a recent press release, a total of 41 banks and 15 service providers are completing the pilot tests.
Ken Montgomery, senior vice president of the Federal Reserve Bank of Boston and executive of the FedNow program, states:
“We are on track to launch the FedNow service, with a robust group of financial institutions and service providers of all sizes in the process of completing the latest round of readiness testing. As we get closer to go-live, financial institutions and their industry partners should feel confident moving forward with their plans to join the network of organizations participating in the FedNow service.”
According to the Federal Reserve, the FedNow service is intended to allow businesses and individuals to send and receive instant payments at any time.
The Federal Reserve plans to increase the number of banks using FedNow this year and for years to come until 10,000 banks have adopted the technology.
Other big banks testing the service to start using it in July include Bank of New York Mellon, US Bancorp and Wells Fargo. The United States Department of the Treasury also intends to use the service.
Service providers conducting final tests include Juniper Payments, Jack Henry, and Open Payment Network.
