Banks serving as guinea pigs for Federal Reserves instant payments system
- "Ars reached out to large and small institutions included on the Fed's list of early adopters to find out how they're using the new payments technology.Among the big banks listed as early adopters are Wells Fargo and JPMorgan Chase.
- Ashley Belanger - Jul 21, 2023 3:19 pm UTC Yesterday, the US Federal Reserve officially launched FedNow, a new system rolled out to 35 early-adopting banks and credit unions for processing instant payments between financial institutions.
- ""The Federal Reserve built the FedNow Service to help make everyday payments over the coming years faster and more convenient," Federal Reserve Chair Jerome Powell said in a press release.
- "Over time, as more banks choose to use this new tool, the benefits to individuals and businesses will include enabling a person to immediately receive a paycheck or a company to instantly access funds when an invoice is paid.
- A press release from another early adopter, BNY Mellon, said the Fed would be continuing to onboard more institutions throughout the rest of this year.
- For now, peer-to-peer payments apps seem safe, though, as analysts told NBC News that FedNow is "likely to benefit consumers and small businesses the most.
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