What is FedNow Service?

Moving money between bank accounts has traditionally taken one to three business days, which is slow for people and businesses that shop and get paid at any hour. Instant payment systems exist to close that gap by moving money between accounts almost immediately. The FedNow Service is an instant payment infrastructure developed by the Federal Reserve, the central bank of the United States. The Federal Reserve says that, through participating financial institutions, businesses and individuals can send and receive instant payments in real time, around the clock, every day of the year. Its messages follow ISO 20022, a messaging standard.

Written from primary sources and reference pages, and checked against them by an independent AI fact-checker. Drafted with AI assistance.