The US Federal Reserve (Fed) announced that its new system “FedNow” for instant payments has been put into service.
In the statement made by the Fed, it was reported that the bank launched the new payment system FedNow.
In the statement, it was noted that banks and credit unions of all sizes can sign up and use this system to transfer money instantly for their customers at any time of the day, any day of the year.
In addition to the US Treasury Department’s Financial Services Bureau, 35 banks and credit unions are currently using FedNow, and 16 service providers are ready to support payment transactions for banks and credit unions.
In the statement, it was stated that when the system is fully used, instant payments will provide significant benefits to consumers and businesses, individuals can receive their paychecks instantly and use them the same day, and small businesses can manage their cash flows more efficiently without transaction delays.
“The Fed has created the FedNow service to help make day-to-day payments faster and more convenient for years to come,” Fed Chairman Jerome Powell said in a statement. used the phrases.
Powell stated that as more banks started to use this new tool over time, individuals could receive their paychecks immediately or companies could have instant access to funds when their bills were paid.
In 2019, the Fed announced that it would develop an instant payment service called FedNow to enable faster payments in the US.