What is FedNow?
FedNow is a new instant payment infrastructure developed by the Federal Reserve. It enables financial institutions of all sizes across the U.S. to offer real-time, 24/7/365 instant payment services to their customers—both individuals and businesses. With FedNow, funds are transferred and made available to recipients within seconds, providing immediate access and flexibility for time-sensitive transactions.
Who Can Provide FedNow Services?
Eligible Providers: Banks and credit unions that participate in the FedNow Service can offer instant payment capabilities to their customers. These institutions may connect directly or work with certified service providers like idebit to implement and manage instant payments.
Service Providers: In addition to financial institutions, certified service providers—like idebit—play a key role in supporting banks and credit unions with FedNow implementation and ongoing operations.
Benefits to Consumers
Real-Time Access: Consumers can send and receive money instantly, ensuring immediate access to funds for urgent needs such as payroll, bill payments, or emergency expenses.
24/7/365 Availability: Payments can be made any time—nights, weekends, and holidays included—eliminating delays associated with traditional banking hours or processing windows.
Financial Flexibility: Instant payments help avoid late fees, support just-in-time bill payments, and provide greater control over personal finances.
Immediate Confirmation: Both senders and recipients receive instant confirmation that a payment has been completed, increasing transparency and trust in transactions.
What Does “Instant Payment” Mean?
An instant payment is a transaction where funds are transferred and settled between accounts in real time, typically within 20 seconds or less. This means the recipient has immediate access to the money, unlike traditional transfers that may take hours or days to process. Instant payments are available around the clock, providing unmatched speed and convenience for both personal and business transactions.
How to Get Involved
For Consumers: Check with your bank or credit union to see if they offer FedNow instant payment services. As more institutions join, access to FedNow will become increasingly widespread.
For Financial Institutions: Institutions can participate by connecting directly to FedNow or partnering with certified service providers like idebit.. The Federal Reserve offers resources and a Service Provider Showcase to support onboarding and implementation.
For Industry Stakeholders: Join the FedNow Community to contribute expertise, stay informed on developments, and help shape the future of instant payments in the U.S..
Bringing FedNow to Schools
School Savings, also known as Save For America School Savings, is a national bank-at-school program with a 45-year legacy, having served approximately 300 financial institutions nationwide. Beginning in September 2025, School Savings will offer FedNow Instant Payments through idebit and its network of bank partners.
Certified FedNow Service Provider: School Savings is recognized as an “Authorized Sending Point” and now an “Additional Sending Point” for FedNow Instant Payments. This certification allows School Savings to facilitate both “Send” and “Receive” instant payment transactions for its partner banks.
Role in Financial Education: By integrating FedNow, School Savings enhances its mission of promoting savings and financial literacy among students, making real-time banking experiences accessible in school environments.
Partnership Opportunities: Financial institutions partnering with School Savings can leverage its expertise and infrastructure to deliver FedNow instant payment services to students, families, and school communities.
Key Takeaways
FedNow delivers real-time, 24/7/365 instant payments through participating banks, credit unions, and certified service providers.
Consumers benefit from immediate access to funds, financial flexibility, and instant transaction confirmation.
Instant payments mean money is received within seconds—typically under 20 seconds—any time of day.
Getting involved is easy for both consumers (through their banks) and institutions (by joining the FedNow network or working with certified providers).
School Savings is a leader in bringing FedNow to educational settings, offering instant payments through bank partners and supporting financial literacy for the next generation.
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