rtgs

The FedNow instant payment service is the official instant payment infrastructure launched by the Federal Reserve System on July 20, 2023. It’s akin to the widely adopted 'real-time payment' systems in China (like Alipay/WeChat's instant transfer), but it targets the traditional banking system in the U.S. The goal is to enable all banks across the U.S. (including community banks) to provide clients with 24/7/365 real-time payment services. frbservices.org The core features and working principles of FedNow.
Real-Time Gross Settlement (RTGS): Each payment is processed, cleared, and settled individually and instantly (unlike traditional ACH batch settlements that can take days). After the payer initiates the transaction, funds are deducted from the payer's main account within seconds and directly transferred to the recipient bank's main account, making the funds immediately available to the recipient.