FedNow Instant Payments

I heard the feds are working on a similar system called fednow:https://www.federalreserve.gov/paymentsystems/fednow_about.h...

Yeah, why didn't they just use FedNow? /s

That looks like a US version of Faster Payments* (UK) or SWIFT (Eurozone) that enables instant wire transfers between bank accounts. I doubt very much it is suitable as an alternative to credit/debit cards for retail payments. For one thing, there's zero fraud protection, it's the electronic equivalent to paying for something with a cashier's check. For another, it's a pretty laborious process - you have to sign in to your online banking, enter the recipient's bank

He missed FedNow.FedNow is operational. It just turned on last month. It's run by the Fed, like ACH and FedWire. It's much faster - seconds. The Fed charges $0.043 per transaction, and the transaction size is up to $100,000. Settlement is immediate; funds are available upon receipt. It's a US bank to bank system, mostly, like ACH and FedWire.[1] Many other countries have similar systems.As banks roll this out to consumers, there will effectively be a ceiling on how much othe

Will Fednow not interoperate with SWIFT?

Supposedly, that is in development:https://www.federalreserve.gov/paymentsystems/fednow_about.h...

US banks have something mostly like this: Zelle [1]; the company behind it, Early Warning Systems, is owned by JPMorgan Chase, Bank of America, Capital One, Wells Fargo, PNC, basically every bank has a stake in it, and every bank supports it. And it works better than Cash App/Venmo; enter phone number or email address, get an instant direct bank-to-bank transfer, no fees, all from the normal bank app you'd already be using.What we're really talking about with FedNow is not user

The US banking system is notably decentralized/fragmented, with a fat tail of regional banks. That extends to regulation, where banks are chartered at both the federal and state levels (both of which jealously guard their authority). Large banks started to offer a direct-transfer service called Zelle[1] a few years ago, but making it "standard" is a slog thanks to all of those regional banks. Instead, most people use third-party apps that operate over ACH.[1]: <a href="https:&#

Do you have a bank account? FedNow (US instant payments) just crossed the 400 financial institution mark, a little less than 5% of total US banks and credit unions (~9k), and it’s only been live for ~7 months.https://www.frbservices.org/financial-services/fednow<a href="https://www.frbservices.org/financial-services/fednow/organizations" rel="n

It's still baffling to me that the USBaffle no more --- it's called FedNow.https://explore.fednow.org/