Global fintech platform Adyen has become one of the first firms to complete testing and receive certification to use the Federal Reserve’s instant payment infrastructure launching in July 2023: FedNow.
Adyen obtained its US banking branch license in 2021and, by becoming one of the first industry players able to access the FedNow Service, it hopes to meet the needs of US merchants through expanded real-time payments as well as by utilising the financial technology platform’s payout capabilities.
To achieve FedNow Service certification, Adyen completed a comprehensive testing curriculum and demonstrated to the Federal Reserve that its payment services fulfilled a checklist of requirements.
Adyen also plans to streamline cash flow for its customers, improve corporate treasury management, and enable instant funds movement between financial institutions shortly.
Davi Strazza, president of Adyen in North America, said: “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.
“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 also offer businesses a wide variety of powerful tools to thrive in today’s competitive market.”
Ken Montgomery, first vice president of the Federal Reserve Bank of Boston and FedNow Service program executive, also commented: “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. Completing certification is a key milestone for participating organisations to validate their ability to deliver instant payment services.”