FedNow and the Development of U.S. Fast Payments

Vinh Phan and Zhu Wang
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Vinh Phan: https://www.richmondfed.org/research/people/phan2

Richmond Fed Economic Brief, 2026, vol. 26, issue 28

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.

Keywords: payments (search for similar items in EconPapers)
Date: 2026
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