Correction (March 16, 2026): This article originally attributed mid-2025 Federal Reserve data to early 2026. The figures have been updated to accurately reflect the source date.
The Federal Reserve's FedNow Service surpassed 1,400 financial institution participants by its second anniversary in July 2025, covering all 50 states - up from approximately 900 at its one-year anniversary in July 2024. By October 2025, FedNow crossed the 1,500-participant milestone.
Growth Metrics
Transaction volume grew 645% year-over-year from Q3 2024 to Q3 2025, rising from approximately 3,657 daily transactions to 27,239. Full-year 2025 saw approximately 8.4 million settled payments worth $853 billion, compared to 1.5 million payments worth $38 billion in 2024. The number of active senders tripled since launch. Notable 2025 additions include PNC Bank and Capital One, signaling adoption by top-10 US banks beyond the initial community bank wave.
The Reachability Question
Despite rapid enrollment growth, FedNow's absolute volume remains far behind RTP, which processes 98% of US bank-to-bank instant payment volume. The gap reflects that many FedNow participants are receive-only - they can accept instant payments but don't yet originate them. Converting receivers to active senders is the critical next phase.
Competitive Dynamics
The US now operates two competing instant payment rails - an unusual arrangement globally. For payments professionals, the dual-rail environment creates routing complexity but also redundancy. The key question is whether FedNow's broader participant base (especially among smaller community banks and credit unions) will eventually drive volume parity with RTP, or whether RTP's first-mover advantage in high-value payments proves durable.
Sources: Federal Reserve — FedNow Two Years, FedNow Quarterly Stats, Digital Transactions — 1,500 Participants