this post was submitted on 23 Jul 2023
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interesting stuff. I wonder how it's developed since that article was published.
It launched at a few banks a couple of days ago. https://techcrunch.com/2023/07/21/fednow-is-finally-live-in-the-us/
So, I guess it’s in late beta stage where a limited private beta will happen for a bit and then we’ll see how it goes.
It’d honestly be great for small businesses and workers. No more waiting multiple days for a payment to clear and money to become available.
It's also great for splitting checks at restaurants, paying for odd jobs, and paying street vendors. Many countries already have instant payments, so it would be nice if it caught on in the US, but you never know
lots of nice things don't catch on in the US for one reason or another.
Money. The reason is money.
Tech Crunch's recent article indicates it may be costly. https://techcrunch.com/2023/07/23/fednow-may-finally-be-live-but-will-it-be-too-costly-for-businesses-to-adopt/
Depends on how you look at it. According to the article, FedNow is more expensive than automatic clearing house. 4 cents vs half a cent. But if FedNow is competing with Venmo and Paypal, they charge a lot more than the Fed's $0.04. That's also cheaper than what the credit card companies charge businesses.
The banks might choose to make it costly. The fed charges 4 cents per transaction. Ultimately, if your bank charges 25 cents and my bank charges 4 cents, I'll just decline to use your bank for FedNow