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Paradise FedNow? How the 2023 Payments Network Will Improve Real-Time Payments
At the end of August, the U.S. Federal Reserve announced that its real-time payments network, FedNow, was finally going to launch in May or June of 2023. The highly anticipated new service, which will enable instant payments between accounts at participating banks at any time of day, has been contemplated by the Fed and others for over 10 years. More than 120 banks, payment processors, and gateways and others have since tried the service as part of a pilot program. Now that the launch is finally happening, what will it mean for real-time payments in the U.S.?
We can all agree that faster, real-time payments are better for a number of reasons, and the traditional methods have been imperfect. Real-time payments means merchants can get paid without needing to wait for funds to settle, for example, and employees can similarly get their wages faster. They also should…
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