Briefing

FedNow and the Development of U.S. Fast Payments


Abstract: FedNow is a real-time payment service launched by the Federal Reserve in July 2023 that has grown to over 1,700 participating financial institutions. It competes with Real-Time Payments (RTP), a private system launched in 2017. While FedNow and RTP have developed significantly, both systems lag international counterparts in transaction volume, primarily because Americans already have extensive access to digital payments and "instant-feel" alternatives. Despite entering a crowded market, FedNow has the long-term potential to become a core national infrastructure as the U.S. payments system modernizes, leveraging its design features and wide accessibility.

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File(s): File format is text/html https://www.richmondfed.org/publications/research/economic_brief/2026/eb_26-28
Description: Briefing

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Bibliographic Information

Provider: Federal Reserve Bank of Richmond

Part of Series: Richmond Fed Economic Brief

Publication Date: 2026-08-26

Volume: 26

Issue: 28