Banks’ Revenue Opportunity From FedNow Instant Payments

OBSERVATIONS FROM THE FINTECH SNARK TANK

It’s a funny paradox. The Federal Reserve Bank’s launch of FedNow in July 2023 promised that consumers and businesses would be able to pay for groceries, pay their suppliers, and pay each other “instantly” with full and immediate access to funds.

But banks are moving slowly down the path to “faster” or “instant” payments.