The Federal Reserve just launched FedNow, a new instant payment platform, and a select few online are sounding the alarm. This video will explain what FedNow...
I’ve been excited for this even though it seems quite mundane, having a centralized, standardized system for electronic transfers between banks will, IMO, allow banks to simplify payment systems which will relieve pressure on businesses by lowering the cost of transactions.
Right now, there are a lot of “middlemen” aside from the banks and everyone gets a cut, hoping this will yield great results in the future. Crazy to me that we pay so much simply sending money to people.
Also existing “instant” transfers are either expensive or backed by some entity providing credit to back the transaction while it clears in the background creating an awkward at best relationship between the parties trying to exchange money and the service facilitating the transfer.
I’ve been excited for this even though it seems quite mundane, having a centralized, standardized system for electronic transfers between banks will, IMO, allow banks to simplify payment systems which will relieve pressure on businesses by lowering the cost of transactions.
Right now, there are a lot of “middlemen” aside from the banks and everyone gets a cut, hoping this will yield great results in the future. Crazy to me that we pay so much simply sending money to people.
Also existing “instant” transfers are either expensive or backed by some entity providing credit to back the transaction while it clears in the background creating an awkward at best relationship between the parties trying to exchange money and the service facilitating the transfer.