The Federal Reserve announced on Aug. 6 the phased launch of FedNow Service, a 24/7 instant payment system for financial institutions around the country.
Rather than waiting days for checks to clear, consumers and businesses could access funds immediately through the service. The anticipated release year is 2023 or 2024.
“The COVID-19 pandemic has heightened the urgency and importance of delivering a resilient instant payment system that is accessible to all Americans,” said Lael Brainard, a member of the Federal Reserve System’s Board of Governors in an Aug. 6 webinar.
Brainard explained that households on fixed incomes would benefit from instant access to funds. They could avoid potential overdraft fees when paying bills and rely less on credit. Small businesses could benefit …