FedNow instant payment system overview:
- Who: The Federal Reserve is preparing to unveil its real-time payment platform, FedNow, which already has a number of early adopters, including Wells Fargo and Peoples Bank, among others.
- Why: FedNow is being touted as a first-of-its-kind service that will enable bill payments and money transfers to be made nearly instantaneously.
- Where: FedNow is expected to be adopted by financial institutions nationwide.
- What are my options: MoneyGram lets you send money around the world.
The Federal Reserve is preparing to unveil a real-time payment platform called FedNow later this month, a first-of-its-kind service that purports to increase the speed at which bill payments and money transfers can be made.
The central banking system says FedNow will allow financial transactions to be made nearly instantaneously, with the service expected to be adopted by dozens of banks and financial institutions, reports Money.
“The FedNow Service will be available to depository institutions in the United States and will enable individuals and businesses to send instant payments through their depository institution accounts,” the agency said on its website.
More than 50 financial institutions in total will reportedly participate as “early adopters” of the service during its initial release, including banks such as Wells Fargo, JPMorgan Chase, and Peoples Bank, among others.
All banks regulated by Federal Reserve eligible, not required, to implement FedNow
FedNow, which will be run by the Federal Reserve, is being touted as a 24/7 instant-payment system that will allow banks to instantly move money, while differing from peer-to-peer payment apps such as Venmo, PayPal, and Zelle, reports Money.
Unlike a payment app that nearly all consumers can download and sync to their bank account, FedNow will reportedly only be available to bank account holders of banks that decide to use the service.
The Federal Reserve said that any of the approximately 10,000 banks it regulates will be eligible to implement its FedNow service, but that none will be required to do so, reports Money.
“To enable this type of payment for their customers, banks and credit unions of all sizes need a new system that can send and receive funds in real time. The FedNow Service is this system,” the Federal Reserve said.
In other news involving payments, a class action lawsuit was filed against Bank of America in May by a consumer arguing the financial institution collects illegal processing fees for mortgage payments.
What are your thoughts on the Federal Reserve’s real-time payment service, FedNow? Let us know in the comments!
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79 thoughts onGov’t to launch FedNow instant payment system
Absolutely NO! For all the above concerns and more.
There are just too many unknowns about this, and since I got burnt using one of the bank app payments which didn’t identify the receiver end. I am not convinced this will be any safer. There needs to be control in place for not just the sender to send but for the receiver to have an account to receive the money into and not just receive the money. Even with Moneygrams and Western Union transfers, the sender had to have a way to prove they sent the money and get it back if sent to the wrong party. Right now if you send via any of these apps and this proposed new Fed Reserve, you have nothing to stop the funds or prove you sent the money and it was received by the correct party.
To all the suckers who will use this…..Good Luck….You are giving up yet another of your rights. This STINKS so bad only jobama could of wanted this.
I’ll never use it they can shove it in their asses along with their vaccinations .
THIS is just another Scam for Surveillance of everything we buy, sell or trade! As if we don’t already have enough spying on us, already! NO WAY for this from the Fed!!!!
I was going to write the exact same thing. So sick of our crooked government. yet again the American people are left powerless.
We are now living the
1984 GEORGE ORWELL BOOK
BIG Brother 🤨
Not today, not tomorrow, not ever! If this was such a great thing for the American public then why did Biden have to slip it through without anybody knowing not even Congress!!!!!! Don’t want my spending habits monitored, I want to be able to buy what I want when I want and not be told when I can and when I can’t and if I can buy, and most of all I do not want to be judged by being forced to have a social score! This is not China this is America!!!!!
HECK NO! Not enough room to explain why. If you don’t know, RESEARCH IT! #IYKYK
I refuse to participate in my own financial demise! 🤬
NO THANK YOU
THIS NEEDS TO BE STOPED………. AND NOW………..
When first reading about FedNow I thought how great it would feel, for me, to be able to pay all of my bills in one place rather than writing checks or calling each payee individually.
After reading the comments; some very scary and anti-government, I am still thinking of the ease it will be for me. At age 74, I need all the ease I can get. I hope my bank signs on for this!
Old fools will lose everything
Exactly! This will allow your government to freeze your money if they want to they will be able to take your money from you if they want to. Do some more research . Ugh