The Federal Reserve announced that its much-awaited real-time payments system, the FedNow Service, is live, allowing banks and credit unions to subscribe to the service.

The new system will settle payments between banks and other financial institutions 24 hours a day, seven days a week, with transactions clearing in seconds. The system went live with 35 banks and credit unions set up to use it directly and 16 service providers capable of using it on behalf of banks.

“The Federal Reserve built the FedNow Service to help make everyday payments over the coming years faster and more convenient,” said Federal Reserve Chair Jerome H. Powell. “Over time, as more banks choose to use this new tool, the benefits to individuals and businesses will include enabling a person to immediately receive a paycheck, or a company to instantly access funds when an invoice is paid.”

The Fed anticipates payments advances, such as faster payouts for workers and improved cash flow management for small businesses, as a result of widespread adoption of the system.

Those involved as early adopters include JPMorgan Chase, Wells Fargo Bank and BNY Mellon, as well as the US Treasury Department and smaller banks such as Peoples Bank and Mediapolis Savings Bank.

Service providers such as Finastra and Open Payment Network are also participating in the system.