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FedNow enters year three with increasing users, volumes, and competition, reporting a whopping 1,200% year-over-year increase in transaction volume, growing from 97,424 settled payments in the first quarter of 2024 to 1,310,017 in the quarter ending March 31, 2025

July 25, 2025 //  by Finnovate

FedNow, which turned two years old on July 20, reported a whopping 1,200% year-over-year increase in transaction volume, growing from 97,424 settled payments in the first quarter of 2024 to 1,310,017 in the quarter ending March 31, 2025. At its one year anniversary last July, the Fed had enrolled more than 850 financial institutions into FedNow and had at least 1,000 more in the pipeline. But as of July 7, more than 1,400 financial institutions—including large and small banks and credit unions—were participating in the FedNow Service. Community banks and credit unions make up more than 95% of the platform’s total participants. That all sounds impressive until you look at data recently reported by competitors RTP and Zelle. The RTP network, which is operated by The Clearing House and owned by multiple large banks, makes FedNow’s transaction volume look tiny by comparison. RTP handles more than 1 million daily transactions and, in fact, set a new single-day record for payments volume at nearly 1.6 million transactions on Jan. 31. The RTP network currently reaches 70% of demand deposit accounts in the United States, meaning that millions of consumers and businesses are benefiting from instant payments through the 850 financial institutions connected to the network. Tim Scholten, founder and president of the credit union and community bank consultancy Visible Progress, told Tyfone that FedNow adoption is growing but slowly.

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Category: Networks Processors & PSPs, Innovation Topics

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