BNY Mellon announced it is now live on the Federal Reserve’s new instant payment rail, the FedNow Service, making it one of the first banks to begin sending and receiving payments from participating institutions and support payment activity through settlement or liquidity services. FedNow will operate 24 hours a day, seven days a week, year-round. With the FedNow Service financial institutions will be able to clear and settle payments instantly at any time.
Through the FedNow Service, BNY Mellon is positioned to expand the options for corporations, non-banking financial institutions (NBFIs) and fintechs to move funds instantly, offering choice for bill payments, payroll, instant account funding and more. By also participating in a Service Provider role, BNY Mellon will offer its financial institution clients access to instant payments, helping them remain competitive and offer best-in-class service for their customers.
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“As an early adopter of the FedNow Service, BNY Mellon demonstrates dedication to innovation,” said Ken Montgomery, Federal Reserve Bank of Boston first vice president and FedNow program executive. “Their leadership paves the way for industrywide progress, setting an example for others wanting to play a role in support of a modernized U.S. payment infrastructure.”
BNY Mellon began working with the FedNow pilot program when it began in January 2021. The firm was one of the early adopters that helped test and provide input on the service. It has also completed a multi-step client testing and certification program in the months leading up to launch.
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“We are relentlessly focused on pushing the payments ecosystem forward by delivering new solutions and services for our clients that help support their business more efficiently,” said Jennifer Barker, Global Head of Treasury Services, BNY Mellon. “By becoming a FedNow Service adopter, we are facilitating broader and deeper access to the financial industry, while creating greater opportunities for our clients to expand their instant payments capabilities.”
Financial institutions and service providers will continue to onboard throughout 2023 and beyond, helping the FedNow Service build a strong instant payments infrastructure across the U.S.
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