FedNow has been expanding its network of financial institutions since its launch two years ago, with PNC Bank now joining the real-time payments system.

Noteworthy Addition

The platform operated by the U.S. Federal Reserve now includes approximately 1,400 participating financial institutions. The inclusion of PNC is significant not only because it’s one of the largest banks in the U.S., but also due to its status as a late joiner.

Competing with RTP

JPMorgan Chase and Wells Fargo had earlier joined FedNow, whereas Bank of America, Citigroup, and PNC were initially hesitant. With Citibank now on board and Capital One expressing interest, the number of major U.S. banks not participating in the platform is decreasing.

Considering Competitors

A key reason many banks were slow to adopt FedNow was their membership in The Clearing House, a consortium that launched its RTP network in 2017 as a competing real-time payments platform.

Despite being a founding member of The Clearing House, PNC’s support for FedNow reflects confidence in both networks. The RTP network recently set a new daily transaction record with over 1.8 million transactions and continues to expand its use cases.

Joining the Fold

FedNow may have a similar number of institutions as RTP, but it has yet to reach the same volume in transactions. However, FedNow has been making progress by raising its transaction limits from $1 million to $10 million, aligning it more closely with B2B payments facilitated by RTP.

The addition of PNC Bank strengthens FedNow’s position and signals potential growth for U.S. real-time payments. With the increasing adoption of instant payments, both RTP and FedNow could coexist and succeed in the market.