The Federal Reserve Banks launched the FedNow® Service in July 2023 to facilitate nationwide reach of instant payment services by financial institutions – regardless of size or geographic location – in near real-time, 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 conveniently, and recipients have full access to funds within seconds, 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 10,000 financial institutions directly or through their agents.
As with current Federal Reserve Bank services, the FedNow Service is available to depository institutions eligible to hold accounts at the Federal Reserve Banks under applicable federal statutes and Federal Reserve rules, policies, and procedures. Participants can designate a service provider or agent to submit or receive payment instructions on their behalf. Participants can also settle payments in the account of a correspondent if they choose to do so. Merchants, consumers, or non-bank payment service providers can access the service through depository institutions as they do today with other payment systems.
Corporate One is a leader in connecting credit unions to the FedNow Service:
• In January 2021, Corporate One was selected by the Federal Reserve to participate in the FedNow® Service Pilot Program. The program supported the development, testing, and adoption of the FedNow Service and encouraged the development of services and use cases that leverage FedNow functionality.
• In April 2023, Corporate One was featured in the Federal Reserve’s FedNow Service Provider Showcase. Credit unions can access the online resource designed to connect financial institutions looking to adopt and innovate upon the FedNow Service with service providers offering instant payment solutions.
• In September 2023, Corporate One completed certification for the FedNow Service. To become certified, Corporate One met the requirements of the FedNow testing program and affirmed that it was ready to meet the requirements to operate in an instant, round-the-clock payments environment.
• In April 2024, Corporate One extended its third-party service provider (TPSP) solution to include the FedNow Service and successfully onboarded three beta credit unions—Directions Credit Union, Credit Union of Ohio, and Solidarity Community Federal Credit Union—onto the FedNow Service. It added another four credit unions to the service by December 2024.
Learn more about the FedNow Service.
Watch our “A Deep Dive into the FedNow® Service” webinar for more information.