Fed set to launch long-awaited instant payments service, modernizing system

The US Federal Reserve is due to imminently launch a long-awaited service which will aim to modernize the country’s payment system by eventually allowing everyday Americans to send and receive funds in seconds, 24 hours a day, seven days a week.

The “FedNow” service, which has been in the works since 2019, will seek to eliminate the several-day lag it commonly takes cash transfers to settle, bringing the US in line with countries including the United Kingdom, India, Brazil, as well as the European Union, where similar services have existed for years.