June 26, 2025—The FedNow® Service is approaching its second anniversary this July and data released by Federal Reserve Financial Services shows the instant payments rail continues to gain momentum.
The FedNow® Service network now has nearly 1,400 live participants, financial institutions with asset sizes ranging from $500 million to $3 trillion and from all 50 states. Dozens of settlement agents and certified service providers, including EasCorp and its technology CUSO Vertifi Software, are active on the network. The FedNow Quarterly Statistics released on April 16, 2025, reported 2025:Q1 total settled payments of 1.3 million, a quarterly volume growth of 43.1%, quarterly value growth of 140.8%, and an average value of $37, 099 per payment.
Recently the Fed shared lessons learned by FedNow® Service participants on their instant payments journeys, such as the benefits of enabling send and receive together to save time and resources and the viability of starting small and scaling up. As the Fed has advocated from the beginning, the FedNow® Service will drive revenue growth and provide financial institutions with a competitive edge in attracting and retaining customers, cross-selling products, and enhancing customer satisfaction and experiences, among other advantages.
Released in October 2024, the U.S. Faster Payments Council’s study, U.S. Instant Payments Adoption Quantitative Study, provided a quantitative baseline of adoption, drivers, and trends, as well as a detailed view of how financial institutions are prioritizing the activation of particular use cases. This study is consistent with updated information on the FedNow® Explorer website. The “soonest to realize” use cases are earned wage access (B2P), digital wallet funding (B2P), and person to person (P2P), with the “greatest reach” being earned wage access (B2P), payroll funding (B2B), and invoices and supplier payments (B2B). Key transaction types sent over the FedNow® Service in its first year included microdeposit account verification, which may account for the even growth of transaction volumes but irregular trend in transaction value, digital wallet defunding, emergency and same-day payroll, and real estate escrow payments.
The Fed will continue to support network expansion and increased volumes with safety, trust, and ease-of-use top of mind. EasCorp, a FedNow® settlement provider, and Vertifi, a FedNow® instant payments gateway provider, are focusing on our own instant payments roadmap. We will continue to apply our extensive industry expertise in liquidity management, settlement, payment risk mitigation, and payment processing, to the continued development of our instant payments settlement solution and our instant payments gateway.