FedNow is a real-time payment and settlement service developed by the Federal Reserve to enable financial institutions of all sizes to provide safe and efficient instant payment services.
FedNow aims to enable instant, 24/7 payments between financial institutions, enhancing the speed and efficiency of payment processing. It acts a bit like an arm of the Federal Reserve that implements technology originally created in the private sector via fintech companies to process transactions immediately.
Fintech
Is FedNow publicly traded?
FedNow is a service developed by the Federal Reserve and is not publicly traded, so you cannot buy FedNow shares directly. However, several publicly traded companies provide related services and infrastructure.
When will FedNow IPO?
FedNow is highly unlikely to conduct an initial public offering (IPO), considering it's a service of the Federal Reserve. If you want to invest in the IPO of a company in the digital payments and transactions space, keep an eye on the upcoming IPO calendar.
IPO
Amazon
Amazon (AMZN -0.78%) Web Services (AWS), an Amazon subsidiary, stands out in the cloud computing domain, offering scalable cloud infrastructure and services. It provides the majority of the "plumbing" for large corporations and government entities using large amounts of data in the U.S.
As many financial institutions rely on AWS for their back-end systems, the company's cloud solutions could play a major role in supporting the infrastructure needed for FedNow.
If you're interested in buying shares of the companies listed above or any other publicly traded company, follow these steps:
Step 1: Open your brokerage app and log in to your account where you handle your investments.
Step 2: Search for the stock. Enter the ticker or company name into the search bar to bring up the stock's trading page.
Step 3: Decide how many shares to buy. Consider your investment goals and how much of your portfolio you want to allocate to this stock.
Step 4: Select the order type. Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
Step 5: Submit your order. Confirm the details and submit your buy order.
Step 6: Review your purchase. Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Is FedNow profitable?
FedNow is a service of the Federal Reserve, which posted a $114.3 billion loss in 2023. As of this writing in October 2025, the Fed has yet to release its 2024 financial results. However, the Fed doesn't release profits and losses specific to FedNow.
ETF Name | Focus | Assets Under Management | Expense Ratio |
|---|---|---|---|
ARK Fintech Innovation ETF (NYSEMKT:ARKF) | Focuses on fintech innovations, including digital payments and mobile banking companies like Square and PayPal | $1.33 billion | 0.75% |
Global X FinTech ETF (NASDAQ:FINX) | Invests in companies involved in financial technology, including payment processors and financial software firms | $315.05 million | 0.68% |
Amplify Digital Payments ETF (NYSEMKT:IPAY) | Narrow focus on mobile payments, including major players like Visa, Mastercard, and Square | $259.88 million | 0.75% |
Amplify Transformational Data Sharing ETF (NYSEMKT:BLOK) | Focuses on blockchain technology, which underpins many digital payment systems | $1.44 billion | 0.76% |
iShares Cybersecurity and Tech ETF (NYSEMKT:IHAK) | Includes companies that provide cybersecurity for financial transactions, crucial for digital payments and fintech | $938.37 million | 0.47% |
Related investing topics
The bottom line on investing in FedNow
FedNow is a payment platform operated by the Federal Reserve. However, the digital payments and fintech industry has plenty of options for investing in companies providing a similar service to FedNow and those that will benefit from the rise of digital payments.
