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What is FedNow? How instant payments work in the United States

By SendPay Business · · 2 min read

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  1. Pick who to pay and type the amount
  2. Tap send and it is on its way
  3. It lands in their account

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.
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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.

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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.

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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.

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How it works

Your own money app
  1. Name it and pick your colours
  2. Choose what it does
  3. Launch when you are ready

Why sign up

Create your free SendPay account

It's all about creating your own financial platform with ease. Start with a free account today.

  • A free business accountOpen it in about a minute with your business name, email, password and mobile. No card and no documents to start.
  • Get paid from day oneTake card payments, and share your own payment link and invoices so customers pay in a click.
  • A free business websiteFree to build, free to publish and free to keep, with unlimited visits.
  • Your own financial platformDesign and preview your whole platform free, then launch when you are ready.
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SendPay Business is a technology company, not a bank. Accounts, cards and payments are powered by licensed partners.

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Spotted a mistake or something out of date? and we'll fix it. How our guides are made

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. Other companies named in this guide are reference points only and are not affiliated with SendPay Business.