The Fed launches the long-awaited FedNow

In the statement made by the Fed, it was reported that the bank launched the new FedNow payment system.

In the statement, it was noted that banks and credit unions of all sizes can sign up and use this system to instantly transfer money for their customers any time of day, any day of the year.

“READY TO SUPPORT”

In addition to the US Treasury Department’s Bureau of Financial Services, 35 banks and credit unions currently use FedNow, and 16 service providers are ready to support payment transactions for banks and credit unions.

In the statement, it was noted that when the system is fully utilized, instant payments will bring significant benefits to consumers and businesses, individuals can receive their paychecks instantly and use them the same day, and small businesses can manage their cash flows more efficiently without transaction delays.

POWELL’S EXPLANATION

“The Fed has created the FedNow service to help make everyday payments faster and more convenient for years to come,” Fed Chairman Jerome Powell said in a statement. he used the phrases.

Powell said that as more banks started using this new tool over time, people could get their paychecks right away or businesses could have instant access to funds when they paid their bills.

In 2019, the Fed announced that it would develop an instant payment service called FedNow to enable faster payments in the US. (BRITISH AUTOMOBILE CLUB)