September 24, 2025—Federal Reserve Financial Services (FRFS) will raise the FedNow® Service network transaction limit from $1 million to $10 million, effective November 2025. This marks the second increase in less than a year and reflects a growing demand in the U.S. for higher-value instant payments.
With more than 1,400 participating institutions nationwide, the FedNow Service is emerging as a driver of payments modernization. This increase opens new use cases the payment rail can be used for by financial institutions and the businesses they serve.
Expanding High-Value Use Cases
The $10 million limit significantly broadens FedNow’s applicability, enabling financial institutions and businesses to meet growing demand for speed and certainty across key areas, including corporate treasury, payroll, vendor payments, and real estate transactions. As noted in FRFS press release, financial institutions will continue to have flexibility to set lower transaction limits based on internal risk parameters and business needs.
Meeting Growing Demand for Instant Payments
According to PaymentsJournal, the higher transaction limit underlines the surging adoption of instant payments. The FedNow® Service processed over 2.1 million transactions in Q2 2025, a 62% increase from the prior quarter, with an average payment exceeding $115,000. The daily transaction value grew more than 400% year over year.
Staying Competitive
By raising its transaction cap, FedNow aligns directly with The Clearing House’s Real Time Payments (RTP) network, which has offered a $10 million limit since late 2024. This alignment strengthens FedNow’s position in the instant payments ecosystem while reinforcing confidence in the public network’s security and stability.
Accelerating U.S. Payments Modernization
In raising the limit to $10 million, the Federal Reserve has signaled its confidence in instant payments as a cornerstone of the modern financial system—bringing faster, more secure, and more flexible solutions to businesses, institutions, and individuals nationwide.
We at Vertifi are applying our payments and money movement expertise to the continued development of our instant payments gateway and to EasCorp’s settlement service. Our FedNow Service solutions integrate with core processors, digital banking interfaces, and other applications. If you are interested in learning more, please contact us via this form.