The Federal Reserve moved up its planned industrywide launch of the FedNow instant payments service by up to a full year to 2023. The announcement narrows the industrywide delivery timeframe from 2023-2024.
As advocated by ICBA, the Fed is taking a phased approach to implementing FedNow to expedite its launch. FedNow will initially feature core clearing and settlement functionality, and the Fed plans to enhance the system via subsequent releases.
The Fed last week announced the more than 110 organizations that will participate in the FedNow Pilot Program, including numerous community banks.Additionally, the FedNow Community is planning a town hall webinar at 11:30 a.m. (Eastern time) Thursday, Feb. 11, on the latest developments and 2021 plans.