What is FedNow and Why you should Know?
The new instant payment
The FedNow Service, developed by the Federal Reserve, is a new instant payment infrastructure set to launch in July 2023.
It enables financial institutions of all sizes in the U.S. to offer secure and efficient instant payment services. With the FedNow Service, businesses and individuals can send and receive instant payments in real-time, 24/7, 365 days a year. This empowers financial institutions and their service providers to deliver innovative instant payment solutions to their customers. Recipients of these payments gain immediate access to funds, granting them greater financial flexibility for time-sensitive transactions.
Instant payments have captured the attention of the digital economy due to their speed and convenience. Leveraging technology, individuals can make payments within seconds without physical interaction, benefiting from immediate access to funds. Businesses can enhance cash flow management and minimize payment reversals, enjoying real-time money management.
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Small merchants can boost cash on hand and reduce reliance on loans by receiving instant payments…
