FedNow: the road to non-bank access to US instant payments

Debate over granting non-banks access to Fed systems reveals possible flaws in US regulation


When the Federal Reserve announced in August 2019 that it would develop its instant payment system, FedNow, it outlined ambitions to achieve ubiquitous faster payments in the US. One means to this end would be to make a wide range of institutions eligible to directly participate in the system.

This was the case made by several non-bank payment service providers (PSPs) in response to the central bank’s plans. Firms such as TransferWise, Stripe, Shazam, Google, Apple, PayPal and Square see FedNow

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