The US Federal Reserve has announced intentions to create its payment system that may enable American banks to provide their clients with 24/7 immediate payments. The press release was published on the official website of the authority this Monday.
According to the press release, the new system called FedNow Service is expected to support payments non-stop which can play into citizens' hands anyway. In general, the subject system is panned as an infrastructure which can be used by financial service providers for the development of their own payment tools.
"The rapid evolution of technology presents a pivotal opportunity for the Federal Reserve and the payment industry to modernize the nation's payment system and establish a safe and efficient foundation for the future," as stated the US Fed.
For reference, the US Central Bank asked the public to provide the comments on such a project in 2018. As a result, it received about 350 comments in which about 90% of the respondents supported the initiative.
"Everyone deserves the same ability to make and receive payments immediately and securely, and every bank deserves the same opportunity to offer that service to its community," said Federal Reserve Board Governor Lael Brainard.
FedNow Service is expected to come on stream in 2023-2024.
At the same time, the US Fed is also considering expansion of the Fedwire Funds Service and National Settlement service, intending to make services available up to 24/7.