Launched in July 2023, the FedNow Service is set to provide financial institutions no matter their size and location across the nation with access to safe and efficient instant payment services in real-time, 24 hours a day.
Per the information detailed in the announcement, the launch of the FedNow Service marks a significant step forward in the US payments landscape, providing substantial benefits for consumers and businesses alike, such as expedited access to funds and cash flow management.
To be able to achieve the certification, Form3 met the requirements of the FedNow Service testing programme and attested its preparation to meet the requirements to operate successfully in a 24x7x365 instant payments environment. What is more, Form3 has been a participator in the FedNow Service Pilot Programme since July 2022.
The company’s enterprise-grade, managed, payment technology platform is available to assist early adopters with connecting to the FedNow Service, offering banks and financial service providers in the US the opportunity to further their journey by expanding their reach and product range. Additionally, the company’s approach to backend payment technology is built on the company’s extensive experience within the instant payment industry in Europe, having cooperated with banks and financial institutions in the UK on the Faster Payments System (FPS) network since 2016.
What is more, the announcement highlights that Form3’s scheme-agnostic API is set to help drive the broader rollout of instant payments in the US. Form3’s instant payments simulator is available for banks and financial providers to leverage for testing out instant payments, ensuring a simplified onboarding for institutions looking to connect to the FedNow Service and TCH RTP.
When commenting on the announcement, Dave Scola, US Chief Executive, Form3 expressed content regarding the achievement of the FedNow Service certification, stating that it marks additional progress in Form3’s journey to becoming a premier provider of US payment gateway connectivity. The spokesperson believes the company’s scale and experience in mature instant payment markets of the likes of the UK enable it to be an appropriate partner for US-based banks and financial service providers that seek to enter the next stage of their growth.
Adding on this, Ken Montgomery, Federal Reserve Bank of Boston's first vice president and FedNow Service programme executive advised that they are looking forward to seeing early adopters of all sizes across the country make strides in their operational readiness for live transactions through the system. Per the representative’s statement, completing certification is a key milestone for participating organisations to validate their ability for instant payment service delivery.
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