The Federal Reserve announced on Monday that it is working on a real-time payments system. At a speech in Kansas City, Mo., Fed Governor Lael Brainard delivered the announcement that many in the payments industry have , revealing that the real-time payments system would be called FedNow.
“FedNow will permit banks of every size in every community across the country to provide real-time payments,” said Brainard. She did not give a specific date on when FedNow will be but said it is expected to become available in 2023 or 2024.
During her speech, Brainard explained how the decision required a lot of thought and dialogue with all the relevant stakeholders, dating back to 2015. After much consideration, the Fed determined that FedNow would provide competition in the real-time payments space.