October 7, 2022

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The Fed says the real-time payment system could start in May 2023

The Fed says the real-time payment system could start in May 2023

a Federal Reserve The agency’s new real-time payments system, FedNow, is scheduled to launch as early as May 2023, an official said.

FedNow was developed about a decade ago and is supposed to allow banks to send payments to each other in real time, allowing bank customers to send real-time payments to each other as well.

The system, which will operate 24 hours a day, seven days a week, is expected to be less expensive than wire transfer or debit card fees.

But while FedNow was in development, other banks and the cryptocurrency industry were looking at other alternatives to real-time payments.

Sen. We warned of ‘grave concern’ that the Fed will tip this economy into a recession.”

A Federal Reserve official said the agency’s new real-time payments system, FedNow, is scheduled to launch as early as May 2023. (AP Photo)

The banking industry owns Zelle, a service that allows people to send Real time payments. Other applications that allow real-time payment, such as Venmo, Cash App and PayPal, are widely used by individuals.

Federal Reserve Vice President Lyle Brainard said Monday at an early FedNow workshop in Rosemont, Illinois, that she expects the system to be operational between May and July 2023.

outside the Federal Reserve

FedNow, which will operate 24 hours a day, seven days a week, is expected to be less expensive than wire transfer or debit card fees. (Getty Images)

The Fed was previously vague about when it expected to launch FedNow.

“Having the ability to manage money in real time can help families avoid costly late payment fees or free up working capital for small businesses to fund growth,” Brainard said.

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Federal Reserve Building

Fed Vice President Lyle Brainard said she expects the FedNow system to be operational between May and July 2023.

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“Indeed, during the pandemic, we’ve seen how important quick access to money is, as many families started spending emergency relief payments on the day they were received,” she continued.

The Associated Press contributed to this report.