WASHINGTON—The Federal Reserve has provided an update on its FedNow Service, indicating the program will be launched in phases.
The current target release date of 2023 or 2024 remains, however, with the Fed saying it intends to announce a more specific timeframe for the launch as well as dates for forthcoming pilot programs.
The announcement includes a number of details about the service, including:
- Fees will be based on transaction costs associated with mature volume estimates
- The FedLine network will serve as the channel through which participating financial institutions access the service
- The request-for-payment message type will be available as part of the launch
Additionally, the FedNow Service will launch with a liquidity management tool to facilitate funds transfers in support of real-time payments. The service will also include a set of fraud prevention tools at launch and in future phases.