SoFi joins first banks to offer FedNow send & receive

Galileo has enabled SoFi to send and receive payments through the FedNow Service, making SoFi one of the first banks to offer both functions to customers.

SoFi members can move money in seconds between their SoFi accounts and accounts they hold at other US banks. The transfers are available at any time, including weekends and holidays, instead of following the delays common with ACH transfers.

The arrangement expands SoFi's use of Galileo, the financial technology platform owned by the bank's parent group. Galileo provides the connection to the Federal Reserve's instant payments system and the transaction controls needed to support real-time transfers.

Many banks connected to FedNow only allow incoming payments. SoFi members, by contrast, can both send money to another bank account in their own name and receive money into SoFi, giving them faster access to funds for payments, transfers and account funding.

The move reflects growing pressure on banks to offer faster payment options as consumers expect round-the-clock access to their money. Instant transfers can be especially useful when customers need to top up an account before a scheduled bill payment or maintain a required minimum balance.

Members who transfer money into SoFi from another bank can begin using SoFi products as soon as the transfer arrives. That removes the wait associated with traditional bank transfer systems, which often take several business days to settle.

Bill Kennedy, Chief Financial Officer and Interim Head of Galileo, said the launch shows how instant payment infrastructure is moving into everyday retail banking.

"For customers, waiting days for money to show up doesn't match how payments work today," said Bill Kennedy, Chief Financial Officer and Interim Head of Galileo. "By pairing FedNow Service with Galileo's platform, SoFi gives members instant access to their money whenever they need it, while we manage the infrastructure behind the scenes. It also lays the groundwork to bring the same instant payment capabilities to partners in the future."

Wider use

The system already in place for SoFi could also support other financial technology firms and businesses through SoFi Bank as a partner bank. That would let companies offer instant payment features without setting up their own direct connection to the FedNow network.

The model is aimed at digital banks, fintech groups and companies that embed financial services in their own apps. By using SoFi Bank and Galileo's existing setup, those firms could enter the instant payments market through an established banking and technical connection.

Anthony Noto, Chief Executive Officer of SoFi, said the bank sees immediate money movement as a basic customer requirement rather than a niche service.

"Helping our members get their money right means giving them control over their money in real time, not days later," said Anthony Noto, Chief Executive Officer of SoFi. "Money should move instantly and without limits, but legacy technology and data systems fail to provide a safe and reliable platform to achieve instant and limitless money movement. By integrating Fednow into our Galileo payment hub platform, we are among the first companies to enable both sending and receiving funds via Fednow, giving SoFi members instant, 24/7 access to their money."

Payments shift

FedNow is the Federal Reserve's instant payments service for US financial institutions, designed to settle transactions immediately at any hour. Since its launch, adoption has expanded, but usage has varied across banks, with some institutions choosing at first to accept incoming payments only.

That makes SoFi's decision to support both sending and receiving notable in a market where many banks have introduced instant payments in a more limited form. For customers, the difference is whether they can actively push funds to another account as well as receive them.

For Galileo, the development also shows how banking platforms can package access to national payment rails for other institutions and fintech clients. Rather than each firm building and maintaining its own connection, the infrastructure can be shared through a sponsor bank model.

Galileo operates as a technology provider rather than a bank, working with banks and financial technology groups across North and Latin America. Its role in the SoFi rollout centres on transaction processing and network connectivity rather than holding customer deposits.

The launch places SoFi in a small group of banks offering customers a fuller set of FedNow functions, with the practical benefit that money can move between linked accounts in seconds instead of days.