Fed Intends to Release FedNow Payments System in Stages

The Federal Reserve said they will look to release the FedNow real-time payments system in stages starting in 2023 and 2024; “We want to take the time to get it right,” said Kenneth Montgomery, the first vice president of the Federal Reserve Bank of Boston who is overseeing FedNow, to American Banker. “As we continue to refine business requirements, hear from the industry about what they’re looking for, our objective will to be have subsequent releases after that initial release of FedNow.”; there are concerns about the new Fed system, especially around interoperability with the private sector option as industry participants want to ensure the systems can work with each other; Montgomery said seamless interoperability might not happen with the first release but he believes the new system will be better than the current ACH option; having a private market option will ensure competition and make the overall payments system better. American Banker

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