SoFi enables FedNow settlement
SoFi rolled out instant settlement via the FedNow service for both sending and receiving, and is extending those capabilities to partners as part of its 24/7 payments offering. The social posts emphasise SoFi’s positioning around real‑time settlement and partner distribution. (x.com)
SoFi has started letting members send and receive bank transfers that settle in seconds through the Federal Reserve’s FedNow network. (galileo-ft.com) Galileo Financial Technologies said on April 13 that SoFi, N.A. now offers FedNow transfers between a member’s SoFi account and accounts at other United States banks at any hour, including weekends and holidays. Galileo said it powers the service and plans to extend the same capability to other clients on its payments platform. (galileo-ft.com) The Federal Reserve launched FedNow in July 2023 as an instant-payments rail for banks and credit unions. The service runs 24 hours a day, 7 days a week, 365 days a year, and participating institutions can send and receive payments within seconds. (federalreserve.gov, federalreserve.gov) Most banks on FedNow have started with receive-only service, according to Galileo’s announcement. SoFi said it is offering both directions, which means members can push money out as well as accept incoming transfers on the same rail. (galileo-ft.com, digitaltransactions.net) That changes the comparison with automated clearing house transfers, which often post on business-day schedules rather than immediately. The Treasury Department’s Fiscal Service describes FedNow as a separate payment method alongside automated clearing house transfers and wires, with near-real-time confirmation to both sides. (fiscal.treasury.gov, explore.fednow.org) The move also gives SoFi a way to sell the same infrastructure beyond its own bank. SoFi told investors in January that brands, fintechs and financial institutions use Galileo across 128.5 million global accounts, giving it a distribution channel for new payment features. (businesswire.com) FedNow’s network is still expanding. The Federal Reserve says the service is open to banks and credit unions of every size, and it maintains a public list of participants and service providers as adoption grows. (frbservices.org, frbservices.org) SoFi’s pitch is simple: money movement that works more like messaging than batch processing. The company is using its own bank as the first proof point, then using Galileo to package the same always-on settlement for partners. (galileo-ft.com, finextra.com)
