The Federal Reserve recently announced the FedNow Service, which it said will be rolled out in a phased approach, with a target service date of 2023 or 2024.
What Is FedNow? FedNow is a "new interbank 24x7x365 real-time gross settlement service with clearing functionality to support instant payments in the United States," according to the Fed.
The service will allow for end-to-end instant payments in the United States...
As part of the FedNow service, the Fed will back liquidity and provide network security between the banks...
Moving money between banks can take a business day, if not longer...
In 2019, Americans paid over $1 billion in overdraft fees, with 9% paying over 84% of the total, according to research released by Center for Responsible Lending.
Many fintech companies are focusing on getting cash to Americans accounts faster, often using peer-to-peer lending. Square (NYSE: SQ)'s CashApp and Apple (NASDAQ: AAPL) both have peer-to-peer lending that allows for instant account transfers with a small fee.What The FedNow Instant Payment System Means For Americans | August 10, 2020 | Benzinga via MSN
“What The FedNow Instant Payment System Means For Americans”
It means that companies won’t be able to play games and earn interest on the float.