The Federal Reserve’s instant payment network, FedNow, hit a significant milestone in the second quarter – the 2 million transaction mark.

FedNow, which turned two years old on July 20, reported a whopping 1,265% year-over-year increase in transaction volume, growing from 156,076 settled payments in the second quarter of 2024 to more than 2.1 million in the quarter ending June 30, 2025.

The service handled 1.3 million transactions in the first quarter after setting 1.5 million in all of 2024.

And the value of the settled payments skyrocketed by 406% on a quarter-over-quarter basis in the second quarter of 2025.

As of July 7, more than 1,400 financial institutions—including large and small banks and credit unions—were participating in the FedNow Service.

But that still leaves a lot of runway for the platform as there are 4,411 federally insured credit unions in the U.S. and and just slightly fewer banks.

One of the soon-to-be FedNow adopters is Nutmeg State Financial Credit Union in Rocky Hill, Connecticut.

The $703 million-asset credit union is not yet a member of FedNow but plans to soon begin with receiving payments and then will launch the ability to send payments.

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“Receiving payments are a great use case for earned wage access—think of the service industry who can be paid as soon as a job is complete,” Robin Del Vecchio, Nutmeg State’s SVP of Technology & Operations, told Tyfone. “No longer do they have to wait for a Friday payday—if the job is complete on Monday, they can receive their payment on Monday.”

For Nutmeg State, adopting Fednow will mean having the ability to meet the continued growing need for instant payments and eliminating the need for its members to look to fintechs or big banks for those types of services.

It will also increase member engagement, wallet share and member retention.

“It aligns with our digital-first strategy, demonstrating our innovative and tech-forward approach,” Del Vecchio said. “It streamlines back-office operations by reducing the use of ACH batches, exception processing and reduced check handling procedures.”

Additionally, FedNow reduces call volume for exception decisioning, such as removal of holds and inquiries on when funds will be available, she said.

“[FedNow] will provide added security to members as their payments will be made within the digital banking platform, eliminating the riskiness of external apps like Venmo, Zelle or Cash App. Because FedNow is backed by the Federal Reserve, it will provide confidence in security and reliability which will make adoption usage faster as members will use our platform for all of their payment needs.”

 – Robin Del Vecchio
SVP of Technology & Operations
Nutmeg State Financial Credit Union