Terrible name for it.
this post was submitted on 20 Jul 2023
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They need an app called FedUp
Digging deeper, the Federal Reserve says this about it:
The FedNow Service went live on July 20, 2023. It is available to depository institutions in the United States and enables individuals and businesses to send instant payments through their depository institution accounts. The service is a flexible, neutral platform that supports a broad variety of instant payments. At the most fundamental level, the service provides interbank clearing and settlement that enables funds to be transferred from the account of a sender to the account of a receiver in near real-time and at any time, any day of the year. Depository institutions and their service providers can build on this fundamental capability to offer value-added services to their customers.
So it’s a system your bank uses to send your money to other people’s accounts at other banks. In my mind it’ll kinda be like bill pay, you’d go to your bank’s website to do it.
It's more of a protocol/standard which can be used to build applications and interfaces. Bill pay will likely be an application and your bank's website will likely have some interface that uses FedNow. But there will be many other applications and interfaces.
Extremely important word in the lede: "eventually." This won't be something consumers can use for quite some time. Notable absences from participating banks include Bank of America.
Should I edit the post?
Wait... why doesn't the USA have a system like this already?
I always found cryptobro preaching about instant cash transfers perplexing, but this explains a lot.
Financial institutions have been happy with the fees generated by not having this system in place. And the Fed is explicitly not allowed to compete with its member banks.