What is FedNow? How instant payments work in the United States
By SendPay Business · · 2 min read
FedNow is an instant payment service run by the US Federal Reserve. Launched in July 2023, it lets money move between accounts at participating banks and credit unions in seconds, at any time of day, every day of the year.
How a FedNow payment works
- The payer asks their bank to send money.
- The bank sends the payment through FedNow.
- The receiving bank accepts it and the money is available within seconds.
- Both banks settle between them through their accounts at the Federal Reserve.
FedNow vs ACH and wires
ACH transfers are cheap but move in batches and can take a day or more. Wire transfers are fast for large sums but run only during business hours and cost more. FedNow aims to combine speed with round-the-clock hours.
Why your bank may not offer it
Joining FedNow is voluntary. Banks and credit unions sign up in their own time, and some join only to receive payments at first. Both the sender's and the receiver's bank need to be on it for a payment to go through.
Where SendPay fits
In the US, SendPay platforms are card-payment platforms, and SendPay does not connect to FedNow. Outside the US, SendPay platforms include GBP, EUR and USD accounts and transfers under your own brand, powered by licensed partners.
Build it
Create your own financial platform.
Pick a template, name it, brand it, preview every page before you pay. Your brand, your users, your fees.
Build my platform →Questions people ask
Could bank payments cost less than cards?
Compare card fees with pay by bank.
Pay by bank savings calculator →Read next
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.