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 +0.50%) 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.
How to buy stocks similar to FedNew
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. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
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.
Should you invest in FedNow-related stocks?
Investing in stocks related to FedNow could make sense, depending on your personal circumstances and investment strategy.
Here are some reasons you might consider investing in FedNow-related stocks:
1. You believe the demand for digital payments will grow, but you're not into crypto
If you expect continuous growth in the demand for digital and real-time payments, companies related to FedNow, such as Fiserv, ACI Worldwide (ACIW +0.15%), and Mastercard (MA -0.63%), can be solid long-term investments. While cryptocurrency is a popular form of digital asset, digital payments serve a different function by facilitating financial transactions in a timely and orderly manner.
Digital payment systems like FedNow aim to speed up payment processing without creating a new form of currency. The Fed has stated that FedNow is not intended to be a digital currency or to replace any type of currency, including cash.
2. You want to diversify your investments in the financial sector
Investing in companies that provide a wide range of financial services and payment solutions can help balance your portfolio and provide multiple revenue streams. Depending on whether the company pays a dividend, this could be for both growth-oriented and income-oriented investors.
Here are some reasons you might not want to invest in FedNow-related stocks.
1. You're concerned about market saturation and too much competition in fintech
The financial technology sector is highly competitive, with numerous established players, such as PayPal (PYPL -1.00%) and Block (NYSE:SQ), and a constant stream of new entrants. This intense competition makes it challenging for companies to maintain a competitive edge.
If these companies struggle to differentiate themselves and capture significant market share, they may not produce high returns for investors.
2. You're looking for recession-resistant investments
Companies in the fintech sector tend to be especially sensitive to economic downturns, fluctuations in interest rates, and changes in consumer spending. For example, people spend less money during a recession, often leading to lower demand for services like payment processing.
3. You want high-risk, high-return investments
Even though the digital payment industry is moving quickly, many more established players will not have the same upside (or downside) potential of higher-risk investments, such as penny stocks, cryptocurrency, trading options, and other exotic financial products.
ETFs with exposure to FedNow-related companies
Because FedNow isn't a publicly traded company, you won't find it listed among any exchange-traded fund (ETF) holdings. However, many ETFs include companies that provide similar services. Here are a few options:
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% |
The bottom line
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.
