The Federal Reserve recently launched FedNow, an instant payments network allowing businesses and consumers to send and receive payments in seconds versus days through their financial institutions.
In time, funds will be available immediately for American consumers and businesses. On FedNow, your Friday paycheck could be available immediately instead of having to wait until the following week to access your wages. This capability can make a real difference – it could help people avoid overdraft fees and mitigate the need to depend on predatory lenders to fill the lag times. It can also help people recovering from a natural disaster receive their insurance claim instantly and not have to wait for a check to be mailed, deposited, and cleared into their bank account. Businesses can use faster real-time payments to better manage cash flow, instantly receive vendor payments, and reduce costs.
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