A plan by the Federal Reserve to build its own network to transfer funds quickly has pitted technology firms seeking a foothold in the financial sector against banks that have traditionally dominated the payments business.
Tech firms see the new payment system as an opportunity to get into the payments business, and banks, facing a new rival, are pushing for tight rules on companies moving into banking-like services, according to advocates on both sides of the issue.
The Fed in August announced a plan to develop an instant payment system, FedNow, drawing praise and opposition. Big banks, which have their own payments system, are trying to persuade Congress to block the Fed plan.