ATLANTA — Instant payments rail FedNow is nearing the addition of its 1,000th financial institution, and the Federal Reserve credits the growing adoption to its network of fintechs that enable the integration.
The Fed launched FedNow in July 2023 with 35 financial institutions.
“We’re seeing a lot of interest,” Bernadette Ksepka, vice president and FedNow deputy head of product management at the Federal Reserve Bank of Boston, said at Fintech South 2024 on Aug. 27.
Digital bank Grasshopper Bank officially went live on FedNow on Aug. 27, tapping digital banking platform Narmi to do so. Narmi is integrated with fintech FIS’ integrated banking solution core, which allowed the bank to onboard onto the instant payments rail.
“Implementing the FedNow Service will allow us to deliver real-time payment capabilities to our clients through a seamless digital experience,” Luther Liang, director of product at Grasshopper Bank, said in the release.
Along with Narmi and FIS, other certified FedNow service providers include ACI Worldwide, Finzly, Fiserv, Jack Henry and more, according to the Federal Reserve.
As adoption grows, the Fed is also working on transaction volume growth by identifying new use cases for the rail, Ksepka said.
“This is just the beginning for instant payments,” she said.
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