• Federal Reserve launched its new “FedNow” instant payment system
• 35 banks and credit unions, including the U.S. Department of the Treasury, are already equipped to handle payments through FedNow
• The benefits of this system include allowing individuals and businesses to instantly receive payments
Federal Reserve Launches ‚FedNow‘ Instant Payment System
The Federal Reserve has officially launched its new FedNow Service, an instant payment platform that will allow banks and credit unions of all sizes to process transactions 24/7 365 days a year. 35 banks and credit unions, including the Bureau of the Fiscal Service of the US Department of the Treasury, are already equipped to handle payments through FedNow. Additionally, 16 service providers are available to support banks and credit unions with payment processing.
Benefits for Individuals & Businesses
Federal Reserve Chair Jerome Powell said that this service will help make everyday payments faster and more convenient: “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.“ He clarified that this system is not trying to replace fiat money but rather provides users with convenience: „It is like other Federal Reserve payment services…The FedNow Service is neither a form of currency nor a step toward eliminating any form of payment.“
Banks & Credit Unions Ready for Use
35 banks and credit unions are already prepared to use FedNow along with 16 associated service providers. This list includes some well-known names such as JPMorgan Chase & Co., Citibank N.A., Wells Fargo Bank N.A., U.S. Bank N.A., Bank of America N.A., HSBC USA Inc., PNC Bank N.A., TD Bank N.A., SunTrust Bank Inc., BMO Harris Bank N.A., Fifth Third Bank Inc., Capital One National Association, Regions Financial Corporation etcetera . All these entities have been authorized by The United States Department Of The Treasury (UST) in order to accept payments from customers who use Fednow Services across different states in America without facing any interruptions or delays during their financial transactions .
Accessibility For Different Types Of Customers
The accessibility for customers using different type of accounts such as checking account , savings account , prepaid cards , debit cards etcetera can also be done without any problem while using Fednow Services . Also , customers can access their funds anytime anywhere 24/7 which gives them additional flexibility for managing their finances on go . Furthermore , it allows them transfer money securely without having worry about security related issues due frauds or scams .
Conclusion
Overall , The newly launched Fednow Service by U S Federal Government aims provide efficient way carry out financial transactions between individual businesses while ensuring safety secure environment them . With availability 35 Banks Credit Unions alongside 16 Service Providers who been approved by UST offer various facilities regarding instantaneous transfers funds across states America , It certainly going be great convenience lot people leading better opportunities growth future business endeavours !
