How banks and businesses can prep for the FedNow instant-payment system
After a pilot program that lasted six months, the US Federal Reserve System plans to launch its FedNow real-time payment system in July. But many banks and businesses could be caught flatfooted when it launches.
The central bank’s payment and settlement rail is designed to increase liquidity, especially for small businesses and supply chain participants who can get paid instantly for goods and services. It also creates a new way for employees, especially gig and hourly-rate employees, to get paid more quickly and frequently — perhaps every day.