The Federal Reserve’s new real-time payments system known as FedNow is expected to go live as early as May 2023, a Fed official said Monday.
In development for effectively a decade, FedNow is expected to allow banks of any size to send payments to each other in real-time. That will allow bank customers to send real-time payments to one another on the same rails.
The system will operate 24 hours a day, seven days a week, and is expected to cost significantly less than fees charged for wire transfers or debit card transactions.