The Federal Reserve System plays a critical role in maintaining a secure and efficient payment system in the U.S. Through its payment services, such as check processing, ACH services, and wire transfers, the Fed promotes accessibility, safety, efficiency, and innovation in the payment system. The use of electronic payments has increased significantly in recent years, with mobile payment devices becoming popular among consumers of all ages. To meet the growing demand for faster and real-time transactions, the Fed is developing the FedNow® Service, an instant payments infrastructure that will allow individuals and businesses to send and receive payments within seconds. The service is designed to be flexible, neutral, and cloud-based, providing scalability and geographic resiliency. It is expected to yield economic benefits and increase access to instant payments for more people. The FedNow Service will operate alongside the private sector’s Real-Time Payments (RTP®) service, promoting efficiency in instant payments. The Fed is also providing support for the development of private-sector faster payments. The FedNow Service is currently being tested and certified with a diverse group of first adopters, and enhancements will be made over time to support safety, resiliency, and innovation. The Fed aims to increase the number of financial institutions using the Fed
https://www.clevelandfed.org/collections/speeches/2023/sp-20230712-update-on-the-federal-reserves-instant-payments-service