just now
July 13, 2023 - In a significant leap forward for instant payment infrastructure, global financial technology platform Adyen has become one of the first payments tech companies to receive certification to utilise the Federal Reserve's FedNow Service, planned for launch later this month. This achievement underscores Adyen's commitment to supporting U.S. merchants by providing real-time payment services and leveraging the platform's payout capabilities.
The FedNow Service, expected to launch in July 2023, is a cornerstone of the Federal Reserve's modernisation of America's payment infrastructure. Adyen, which secured a U.S. banking branch license in 2021, is now one of the first industry players able to access the FedNow service.
"Businesses are always on the lookout for faster and more efficient ways to move money. The FedNow Service solves that very problem and we are excited to be an early adopter of the service," said Davi Strazza, President of Adyen North America. "Adyen's historical investments into North America have put us in an exciting position today: as one of the only Fintech companies with a local branch license, we are qualified to join the Federal Reserve's new instant payments infrastructure. Combined with our suite of products on payments and embedded finance, we can offer businesses a wide variety of powerful tools to thrive in today's competitive market."
Adyen's certification comes after it fulfilled a comprehensive list of requirements set by the Federal Reserve, to confirm its ability to operate in a 24x7x365 environment As a result, Adyen customers can expect more streamlined cash flows, improved corporate treasury management, and instantaneous movement of funds between financial institutions.
The Federal Reserve also praised the strides made by early adopters like Adyen. "We are excited that early adopters of all sizes across the country are making strides in their operational readiness for live transactions through the system," said Ken Montgomery, Federal Reserve Bank of Boston first vice president and FedNow Service program executive. "Completing certification is a key milestone for participating organizations to validate their ability to deliver instant payment services."
