The Federal Reserve is investing in a new service called FedNow that will allow banks to process and settle individual payments within seconds, instead of requiring customers to wait days for funds to clear.
Round-the-clock, instantaneous transactions would help Americans avoid overdraft and late fees that mount as they wait for transactions to clear, according to CFO Dive, which reports that the Federal Reserve’s real-time retail payment infrastructure system should be ready to launch by 2024.
Federal Reserve Gov. Lael Brainerd said FedNow would be a “game-changer” for small-business owners because it would reduce their need to use short-term financing to pay suppliers.
