The Federal Reserve Board last week announced details of the FedNow℠ Service, a new 24x7x365 interbank settlement service with clearing functionality to support instant payments in the United States.

The features and functionality described represent a key milestone in the FedNow Service's development and are based on input received from the public in response to the Board's 2019 request for comment. CUNA strongly supported the service in its comment letter sent in November.

According to the Fed, it will take a phased approach to service implementation.

The first release of the FedNow Service will provide core clearing and settlement features that will support market needs and help financial institutions manage the transition to a 24x7x365 service. Based on ongoing stakeholder engagement, additional features and service enhancements will be introduced over time.

The target launch date for the service remains 2023 or 2024, with a more specific time frame to be announced after additional work is completed.