The Federal Reserve is taking its instant payment system global. Federal Reserve Financial Services said Wednesday (Sept. 23) that the FedNow® Service will soon support cross-border transactions. The move is the first major step beyond U.S. borders for FedNow since it launched in July 2023. Until now, the service has handled only domestic payments.

The new feature will let banks and credit unions serve customers whose payments involve parties outside the U.S. It will work whether an institution is sending or receiving the money. FedNow will handle the U.S. part of each payment. The overseas part will move through correspondent banks, which transfer money between countries on behalf of other banks. The Fed said the design keeps participants in line with the payment standards shaping the industry.

A group of early adopters will first test new message formats built for the U.S. leg of these payments. The Fed did not name the institutions. It said all FedNow participants will eventually be able to adopt the new formats. Possible uses include international payroll, corporate payments, insurance claims and global treasury management.

The Fed framed the launch as a direct response to its customers. “Cross-border transaction capabilities will give financial institutions powerful new ways to serve internationally active customers. After several years focused on growing the domestic instant payments market, this is an important first step toward meeting the global needs emerging across our ecosystem,” said Nick Stanescu , chief FedNow executive.

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