What is the FedNow API?

The FedNow API is a programmatic interface that allows financial institutions and payment service providers to connect to the Federal Reserve's FedNow Service, send and receive instant payments, and access network-level data through software rather than through a manual interface. It uses ISO 20022 message standards, the same global messaging framework used by SWIFT, SEPA Instant, and other modern payment networks.

The FedNow Service launched in July 2023 with 35 participating institutions. As of April 2026, over 1,700 banks and credit unions are live on the network. Transaction volume in FY 2025 was 8.4 million transactions totaling $853 billion, up 459% year over year. The transaction limit is $10 million per payment, raised from $1 million in November 2025.

How FedNow API access works

FedNow is a bank-to-bank payment rail. Businesses and fintechs cannot connect to it directly. Access requires either being a participating financial institution, working through a bank that is a FedNow participant, or partnering with a certified FedNow service provider.

There are three participation types:

• Send and Receive: The FI can initiate outbound credit transfers and receive inbound payments
• Receive Only: The FI can receive payments but cannot initiate them
• Settlement Only: The FI settles funds on behalf of other participants without processing end-customer payments

Most fintechs access FedNow indirectly, through a sponsor bank or a payment infrastructure provider whose payment API abstracts the FedNow integration. The sponsor bank holds the direct FedNow connection; the fintech integrates with the sponsor's API layer.

ISO 20022 message types

The FedNow Service uses ISO 20022 messaging throughout. Understanding the core message types matters for any team building a FedNow integration.

• pacs.008: Customer Credit Transfer. The primary payment message, sent by the originating FI to initiate an instant payment
• pacs.002: Payment Status Report. Sent by FedNow or the receiving FI to confirm whether a payment was accepted, rejected, or is pending
• pacs.028: Payment Status Request. Sent by either FI to query the status of a previously sent message
• pacs.009: Financial Institution Credit Transfer. Used for liquidity management transfers between FIs, not end-customer payments
• pain.013: Request for Payment. The message used to send an RfP to a payer's bank, asking them to authorize and send funds
• camt.056: Return Request. Used to request a return of a previously sent payment

Rich ISO 20022 data fields mean FedNow payments can carry significantly more remittance information than ACH or wire transfers, which simplifies payment reconciliation on both ends.

The FedNow Network Intelligence API

In April 2026, the Federal Reserve launched a new Network Intelligence API for FedNow participants. This is a separate, distinct capability from the core payment API.

The Network Intelligence API provides receiver account-level data drawn from historical FedNow network activity, giving sending FIs an additional risk signal before executing a payment. It supports two use cases:

• Early risk identification: Participants can combine their own internal data with network-wide insights to decide whether to proceed with a transaction, place it on hold, or flag it for review
• Informed decision-making: Senders get a clearer view of transaction risk in real time before funds move

This is significant because instant payments are irrevocable. Once a FedNow payment settles, it cannot be reversed. Unlike ACH, there is no return window. The Network Intelligence API gives FIs a way to assess risk before the point of no return rather than after.

FedNow API vs. RTP

Both FedNow and RTP are US instant payment rails using ISO 20022 messaging, but they differ in ownership, reach, and transaction profile.

FedNow's higher average transaction value reflects its adoption by institutions processing commercial and treasury payments. RTP has broader consumer payment adoption. Most payment infrastructure providers that support instant payments offer access to both rails via a single API integration, routing to whichever network the recipient's bank supports.

What the FedNow API enables

For fintechs and platforms building on top of a FedNow-connected bank or service provider, the API layer enables:

• Initiating instant credit transfers programmatically via pacs.008
• Receiving real-time status updates via pacs.002 rather than polling
• Sending Requests for Payment via pain.013 to request funds from payers
• Querying payment status on demand via pacs.028
• Accessing network-level fraud risk signals via the Network Intelligence API before sending

Common use cases gaining traction include off-cycle payroll and earned wage access, digital wallet funding and defunding, real estate escrow disbursements, auto loan payouts, online marketplace seller payouts, and instant account verification via microdeposits.