Fed’s new instant payment system could be trouble for PayPal, Venmo

2023/07/24 20:53

The Fed's goal is to connect 9,000 financial institutions nationwide.

Yesterday, the US Federal Reserve officially launched FedNow, a new system rolled out to 35 early-adopting banks and credit unions for processing instant payments between financial institutions. The Fed's goal is to eventually connect more than 9,000 banks and credit unions nationwide, tossing out the old payments system and supporting faster payment processing between all US institutions.

If FedNow becomes popular enough, it could one day make trouble for apps like PayPal and Venmo, which serve as intermediaries to make fast payments between banks. Cash apps could eventually seem so slow or unnecessary that they become obsolete.
https://arstechnica.com/tech-policy/2023/07/banks-serving-as-guinea-pigs-for...