BNY Mellon Joins the FedNow® Service, Advancing U.S. Payment System

Rhea-AI Summary

BNY Mellon announces its participation in the Federal Reserve's new instant payment rail, the FedNow Service, allowing for instant clearing and settlement of payments. BNY Mellon will also offer its financial institution clients access to instant payments as a Service Provider. The firm has been involved in the FedNow pilot program and has completed a client testing and certification program.

Positive

• BNY Mellon's participation in the FedNow Service demonstrates dedication to innovation and leadership in the industry.
• The firm's involvement in the pilot program and completion of client testing showcases its commitment to providing efficient solutions for clients.
• By offering instant payments as a Service Provider, BNY Mellon helps its clients remain competitive and expand their instant payments capabilities.

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• None.

NEW YORK, July 20, 2023 /PRNewswire/ -- BNY Mellon (NYSE: BK) today 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.  

"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.  

"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. A current list of live organizations can be found here, and a FedNow Service launch video with contribution from BNY Mellon can be found here.

About BNY Mellon
Established in 1784, BNY Mellon is America's oldest bank and the first company listed on the New York Stock Exchange (NYSE: BK). Today, BNY Mellon powers capital markets around the world through comprehensive solutions that help clients manage and service their financial assets throughout the investment life cycle. BNY Mellon had $46.9 trillion in assets under custody and/or administration and $1.9 trillion in assets under management as of June 30, 2023. BNY Mellon has been named among Fortune's World's Most Admired Companies and Fast Company's Best Workplaces for Innovators. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation. Additional information is available on www.bnymellon.com. Follow us on LinkedIn or visit our Newsroom for the latest company news.

About the FedNow Service

The Federal Reserve Banks developed the FedNow Service to facilitate nationwide reach of instant payment services by financial institutions — regardless of size or geographic location — around the clock, every day of the year. Through financial institutions participating in the FedNow Service, businesses and individuals can send and receive instant payments at any time of day, and recipients have full access to funds immediately, giving them greater flexibility to manage their money and make time-sensitive payments. Access is provided through the Federal Reserve's FedLine® network, which serves more than 10,000 financial institutions directly or through their agents. For more information, visit FedNowExplorer.org (Off-site). 

Contact:
Ryan Wells
ryanw@bnymellon.com
212-298-1249

View original content:https://www.prnewswire.com/news-releases/bny-mellon-joins-the-fednow-service-advancing-us-payment-system-301882315.html

SOURCE BNY Mellon

FAQ

What is the FedNow Service?

The FedNow Service is the Federal Reserve's new instant payment rail that allows for instant clearing and settlement of payments.

What role does BNY Mellon play in the FedNow Service?

BNY Mellon is one of the first banks to participate in the FedNow Service, both as a user and as a Service Provider. It will offer its financial institution clients access to instant payments.

What is the significance of BNY Mellon's participation in the FedNow Service?

BNY Mellon's participation demonstrates its dedication to innovation and leadership in the industry. It also showcases the firm's commitment to providing efficient solutions for its clients.

What has BNY Mellon's involvement been in the FedNow pilot program?

BNY Mellon has been involved in the FedNow pilot program since January 2021. It has helped test and provide input on the service.

Has BNY Mellon completed any testing or certification for the FedNow Service?

Yes, BNY Mellon has completed a multi-step client testing and certification program in the months leading up to the launch of the FedNow Service.