Federal Reserve Tested Cross-Border FedNow Payments

The network has initiated tests for international payment support to meet rising demand from financial institutions.

Updated on Sept. 24, 2026 in Financial Services

Isometric editorial illustration showing a high-tech conduit connector on a plinth, symbolizing the infrastructure of secure global payment transfers. — The Federal Reserve has initiated testing for international payment support within the FedNow network to address increasing demand from global financial institutions. AI Illustration. Upload story photo >

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Do you trust that new instant cross-border payment systems will make your international money transfers safer?

The Federal Reserve has begun testing enhanced ISO 20022 messaging formats to enable cross-border transactions within the FedNow network. This expansion addresses increased bank demand for instant international payment capabilities.

Why it matters

Current rules restrict FedNow to domestic transactions by limiting participant numbers in transfer chains. Updating these regulations would allow banks to bridge FedNow settlement with correspondent-banking arrangements for global transfers.

FedNow processed 4.997 million customer payments in Q2 2026 with an average transaction size of $54,957. The network currently includes over 1,500 participating financial institutions.

The players

Federal Reserve

The central bank of the United States manages the nation's monetary policy and oversees the FedNow instant payment system.

Payall Payment Systems

This financial technology company is actively participating in the FedNow cross-border payment testing phase.

The details

Financial institutions are testing enhanced ISO 20022 message formats to facilitate the flow of required cross-border data. Payall Payment Systems is among the participants involved in this new testing phase as officials work toward final regulatory approval.

The FedNow network officially launched in July 2023.
Fedwire completed its migration to the ISO 20022 standard in July 2025.
The Federal Reserve proposed Regulation J amendments in April 2026.
The public comment period for the Regulation J proposal ended on June 9, 2026.
The Federal Reserve announced the next phase of FedNow expansion on September 23, 2026.

Market Landscape

The FedNow initiative follows the broader adoption of ISO 20022 messaging standards, which the Federal Reserve previously implemented for Fedwire in 2025. This move positions the U.S. central bank to compete with global instant payment systems by standardizing data protocols for international financial flows.

For the average consumer or business client, this expansion aims to eventually provide faster and more efficient international money transfers through their existing bank. Customers should watch for updates from their specific financial institutions regarding new cross-border service availability.

The takeaway

The Federal Reserve's shift toward cross-border interoperability reflects the growing necessity for instant global money movement. Businesses should monitor whether their primary bank is among the 1,500 institutions participating in the FedNow network to leverage these upcoming capabilities.