JPMorgan Chase & 40 US Banks Test FedNow for Upcoming Instant Payment Service Launch
JPMorgan Chase, a prominent banking giant, along with 40 other esteemed banks in the United States, are actively engaged in testing the Federal Reserve’s groundbreaking instant payment infrastructure known as FedNow.
According to an official press release from the Federal Reserve, a total of 41 banks and 15 service providers are currently in the process of concluding their test trials for FedNow, in preparation for the service’s official launch scheduled for late July.
Ken Montgomery, the first vice president of the Federal Reserve Bank of Boston and the executive overseeing the FedNow program, expressed his confidence in the progress, stating, “We are right on schedule for the impending launch of the FedNow Service, with a robust group of financial institutions and service providers of all sizes in the final stages of readiness testing. As we approach the go-live date, financial institutions and their industry partners can proceed with confidence and solidify their plans to become part of the extensive network of organizations participating in the FedNow Service.”
The primary objective of the FedNow Service, as outlined by the Federal Reserve, is to empower both businesses and individuals to send and receive instant payments at any given time.
The Federal Reserve has laid out its ambitious plan to gradually increase the adoption of FedNow among banks, aiming to onboard all 10,000 banks onto the platform in the coming years.
In addition to JPMorgan Chase, several other major banks such as Bank of New York Mellon, US Bancorp, and Wells Fargo are also conducting tests and are set to begin utilizing the service starting in July. Moreover, the U.S. Department of the Treasury has expressed its intention to leverage the FedNow Service as well.
Among the service providers undergoing the final testing phase are Juniper Payments, Jack Henry, and Open Payment Network. These providers play a vital role in ensuring the smooth functioning of the FedNow infrastructure.
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