The Federal Reserve’s launch of FedNow has garnered significant attention over the past several months. Touted as the U.S. version of a European-style network of real-time payments, the service was met with high expectations. In fact, many still hope that FedNow will be the missing key to catching up with other nations when it comes to payment innovation.
FedNow at its core provides an interbank clearing and settlement infrastructure that is currently geared towards instant payouts. A person or business being paid gets access to the money instantly rather than waiting for a deposit to settle or a check to clear.