FedNow may finally be live, but will it be too costly for businesses to adopt?
- Let’s drill down here.Last week, the U.S. government’s instant payment system, FedNow Service, finally went live.FedNow is an instant payment infrastructure for transferring money that promises to be a faster payment rail for financial institutions, offering immediate access to funds no matter the day or time.
- By making it easier to pay, the company touts that medical company customers were, on average, able to increase patient collections for medical group partners by 75%, reducing the “days sales outstanding” to 12 days from between 60 and 90 days.
- As such, according to Shapiro, “business customers that are deciding which to use may be deterred if banks make FedNow significantly more expensive than ACH.”He added: “A business may be prepared to pay 3.5 cents to get someone money faster, but draw the line at paying 25 cents.
- Here’s how it works: Utilizing a biometric payment system, the customers hover their palm above a reader device that identifies the individual’s unique palm signature and associates it with the customer’s payment card on file in order to charge them for their purchases.
- Who wouldn’t want a one-click way to access and pay all the bills associated with a procedure?CB Insights released its Q2 State of Fintech Report last week, and unsurprisingly, global funding in the space was down — plunging by nearly half to $7.8 billion, its lowest level since 2017.
- A recent report found that about a fifth of BNPL (buy now, pay later) customers said they used Apple Pay Later in its first three months.
Welcome to The Interchange! If you want this in your inbox, sign up here. It was an eventfilled week in the fintech world, what with FedNow launching, the former CEO of fintech Bolt and the compan [+9527 chars]