Read the original full article from the CUNA here.
Here is a brief summary of the article:
- The Federal Reserve launched its FedNow real-time payment system on July 20 after four years of development.
- FedNow is designed to function as a back-office utility and already has 35 financial institutions enabled, including credit unions and corporate credit unions.
- Real-time payment networks have already been successfully implemented in many countries, with early adoption in the US expected to be concentrated on the business-to-business side.
- The Clearing House introduced its own real-time payment system, RTP, in late 2017, and four of its owner banks have also signed up for FedNow.
- The Fed is working with over 100 service providers to develop customer-facing solutions that leverage the new network’s capabilities.