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FED announces that "FedNow service" will be launched in May-July next year


Lael Brainard, vice chairman of the Federal Reserve (FED), announced on Monday
(August 29) that the "FedNow service", a year-round real-time payment service, is
expected to go live from May to July 2023. Financial institutions of all sizes will then be
able to use this innovative core instant payments infrastructure. Brainard said the Fed is
working hard to get FedNow online on time, but the number of U.S. businesses and
households that will eventually be able to use instant payments will depend on whether
financial service providers make the necessary investments to upgrade their payments
infrastructure. Brainard noted that the FED has witnessed the importance of getting funds
quickly during the pandemic, as many households start spending the day they receive
emergency benefits, and having the ability to manage funds on the fly can help
households avoid costly late fees. Brainard said the cloud-first design of FedNow's service
is unique among central bank instant payment services. She said now is the time for all
key stakeholders (financial institutions, core service providers, software companies, and
app developers) to put in the necessary resources to support instant payments.
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