The Federal Reserve's Financial Services division on Wednesday announced the launch of a new instant payment system, FedNow, that will roll out in July.

The central bank says financial institutions can begin formal certification to participate in the new, speedy service starting in April.

"We couldn’t be more excited about the forthcoming FedNow launch, which will enable every participating financial institution, the smallest to the largest and from all corners of the country, to offer a modern instant payment solution," said Ken Montgomery, first vice president of the Federal Reserve Bank of Boston and FedNow program executive.

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"With the launch drawing near, we urge financial institutions and their industry partners to move full steam ahead with preparations to join the FedNow Service," Montgomery added.

The central bank says the FedNow service will allow for financial institutions to process payments around the clock, every day of the year, rather than just being confined to banking hours.

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"With the FedNow Service, the Federal Reserve is creating a leading-edge payments system that is resilient, adaptive, and accessible," Tom Barkin, president of the Federal Reserve Bank of Richmond and FedNow Program executive sponsor, said in a statement.

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"The launch reflects an important milestone in the journey to help financial institutions serve customer needs for instant payments to better support nearly every aspect of our economy."