Unlike peer-to-peer payments services like Venmo or PayPal, which act as intermediaries between banks, payments made via FedNow will settle directly in central bank accounts.
The Fed also operates a real-time payments system called FedWire, but that’s reserved for large-scale, mostly corporate payments and is only operational during business hours. While the new FedNow system is for everyone, it’s likely to benefit consumers and small businesses the most, analysts have said.“We want our clients to benefit from these capabilities, and we want that to be a competitive edge for us,” said Carl Slabicki, global co-head of payments for BNY Mellon’s Treasury Services.
“Having the Fed in the space makes our members feel more comfortable that their needs will be met, that they will be treated fairly for pricing,” said Lance Noggle, senior vice president of operations and senior regulatory counsel at the Independent Community Bankers of America, a trade group. “We want our clients to benefit from these capabilities, and we want that to be a competitive edge for us,” said Carl Slabicki, global co-head of payments for BNY Mellon’s Treasury Services.Democratic Senator Chris Van Hollen, who had urged the Fed to develop a real-time payments system, said in a statement the launch of FedNow is “good news for American consumers and our economy.”
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Jay Leno Drives A McLaren Speedtail Unlike Any Other | CarscoopsThis particular McLaren Speedtail started out life as one of the carmaker's prototypes car auto cars
Read more »
This Fuzzy Caterpillar Conceals a Venom Unlike Any Ever Seen in InsectsCaterpillars with a notoriously painful sting may have evolved their venom with help from ancient microbes, according to a new study led by scientists from the University of Queensland in Australia.
Read more »
Ex-NYPD Commissioner Bernie Kerik ‘in Talks’ With Jack Smith’s Team, Lawyer SaysBut unlike Trump, Bernie Kerik has not received a target letter.
Read more »
Column: A 'soft landing,' and is Powell the most successful Fed chief ever?: McGeeverNot bad for a 'clueless' Fed chair.
Read more »
Fed lawsuit asks judge to force Hunter Biden registration as foreign agentA new federal lawsuit filed Tuesday against the Justice Department is seeking to force first son Hunter Biden to register as a foreign agent.
Read more »
Fed's last rate hike coming at July meeting, economists sayThe U.S. Federal Reserve will raise its benchmark overnight interest rate by 25 basis points to the 5.25%-5.50% range on July 26, according to all 106 economists polled by Reuters, with a majority still saying that will be the last increase of the current tightening cycle.
Read more »