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The FedNowSM Service is a new real-time payment and settlement service with clearing functionality to support faster payments throughout the United States.

However there are other options available, so what are the differences?

This infographic shows a variety of options, and their positioning in the faster payments landscape.

As with the RTP® Network, FedNow is based on ISO 20022 messaging and is expected to significantly advance instant payments throughout the U.S. There are also a variety of domestic U.S. faster payment options with significant differences.

"Businesses generally do not care which rail a payment is settled on, but they do care how fast and efficient the payment is. As more payment methods are added to the landscape, the need for efficiency and value-added, differentiated services around those payments is becoming even stronger."
Aite-Novarica: FedNow Is Almost Here, June 2022