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March 27, 2023 • Issue 23:03:02

Real-time payments coming

soon to a bank near you

stant payments to better support nearly every aspect of our
economy," added Tom Barkin, president of the Richmond
Fed.

FedNow is joining RTP, a real-time payment network de-
veloped by The Clearing House back in 2017. Both only en-
able credit payments, for now. Both also impose transaction
caps. RTP won't handle transactions above $1 million. The
Fed has set a lower transaction limit of $500,000 for Fed-
Now.

Another difference is that FedNow will be available to any
of the 10,000-plus FIs that already access the Fed through its
FedLine network. "FIs can leverage the connectivity they're
already using," said Keith Riddle, CEO of the Americas at
banking solutions provider BankFI.
Industry insiders expect it will be years before all 10,000
FIs are using FedNow, but they insist that interest is strong.
By Patti Murphy "We're seeing tremendous demand from our clients to join

ederal Reserve Chairman Jerome Powell told law- FedNow," said Parag Rohan Jain, vice president and gener-
makers, "We will have real-time payments in this al manager for real-time payments at Fiserv. Many already
country very soon. That's a good thing." This was link to RTP, he added.
F in his semi-annual report to Congress on March 8,
2023. Then on March 15, the Fed made it official, disclosing Even though TCH is not exclusive to its 26 owner banks
that its FedNow service will be open for business begin- (all among the largest in the world), many smaller FIs are
ning in July. expected to opt for FedNow.

FedNow is a new set of payment rails operated by the Fed-
eral Reserve banks and available to any financial institu-
tion with access to the Fed. It is designed to complete pay- Contributed articles inside by:
ments nearly instantaneously.

"With the launch drawing near, we urge financial institu- Allen Kopelman .....................................................................................18
tions (FIs) and their industry partners to move full steam
ahead with preparations to join the FedNow service," said Ken Musante ..........................................................................................19
Ken Montgomery, the Boston Fed first vice president who Natasa Cvijanovic .................................................................................28
has been spearheading the FedNow project.
Elie Y. Katz ...............................................................................................30
"The launch reflects an important milestone in the journey Adrian Talapan .......................................................................................32
to help financial institutions serve customer needs for in-

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