In The News
The U.S. government’s instant payment system, FedNow Service, has officially launched. This system aims to provide faster payment transfers for financial institutions, allowing immediate access to funds regardless of the day or time. FedNow is expected to enhance the efficiency and speed of transactions, benefiting both businesses and individuals.
The Federal Reserve first announced the development of FedNow in 2019, recognizing the need for a real-time payment system in the United States. The system is designed to compete with existing instant payment platforms, such as Venmo and Zelle, which have gained popularity in recent years.
FedNow will enable individuals and businesses to send and receive payments instantly, eliminating the need for traditional payment methods that often involve delays. The system will operate 24/7, 365 days a year, ensuring that transactions can be processed at any time.
Financial institutions will be able to connect to FedNow through application programming interfaces (APIs), allowing them to integrate the instant payment system into their existing infrastructure. This will enable banks and credit unions to offer their customers faster and more convenient payment options.
The launch of FedNow comes at a time when the demand for instant payments is increasing. The COVID-19 pandemic has accelerated the shift towards digital payments, with consumers and businesses seeking faster and more efficient ways to transfer funds. FedNow aims to meet this demand and provide a secure and reliable payment infrastructure.
Top things to Know
– The U.S. government’s instant payment system, FedNow Service, has gone live.
– FedNow is an instant payment infrastructure that offers faster payment transfers for financial institutions.
– The system allows immediate access to funds regardless of the day or time.
– FedNow aims to compete with existing instant payment platforms like Venmo and Zelle.
– It will enable individuals and businesses to send and receive payments instantly.
– The system operates 24/7, 365 days a year.
– Financial institutions can connect to FedNow through APIs to integrate the system into their infrastructure.
– The launch of FedNow comes at a time of increasing demand for instant payments.
– The COVID-19 pandemic has accelerated the shift towards digital payments.
– FedNow aims to provide a secure and reliable payment infrastructure.
Original article: https://techcrunch.com/2023/07/21/fednow-is-finally-live-in-the-us/