CHICAGO –Fifty-seven early adopters, including a number of credit unions, have completed formal testing and certification in advance of the FedNow Service's launch planned for late July, the Federal Reserve announced.
Credit unions and CU organizations that have been certified for the FedNow service include Alloya Corporate, Catalyst Corporate, Consumers Cooperative CU, Corporate America CU, Corporate One FCU, Eastern Corporate FCU, HawaiiUSA FCU, Michigan Schools & Government CU, Millennium Corporate, Pima FCU, Star One CU, Veridian CU and Vizo Financial.
“Many of these organizations will be live when the FedNow Service launches or shortly after, with financial institutions ready to send and receive transactions and service providers ready to support transaction activity,” the Fed noted.
Final Trial Runs
According to the Fed, the group of early adopters is now performing final trial runs on the service to confirm their readiness to support live transactions over the new instant payments infrastructure. 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.
"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. "With go-live nearing, financial institutions and their industry partners should be confident in moving forward with plans to join the network of organizations participating in the FedNow Service."
The Goal
The Fed said that over time financial institutions are expected to adopt and build on the FedNow Service with the “goal of offering new instant payments services to their customers.”
Montgomery stated that as a platform for innovation, the FedNow Service is intended to support multiple use cases, such as account to account transfer, request for payment, bill pay, and many others.
“In addition to working with early adopters, the Federal Reserve continues to work with and onboard financial institutions planning to join later in 2023 and beyond, as the initial step to growing a robust network aiming to reach all 10,000 U.S. financial institutions,” the Fed stated.
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