A new instant payment system may be coming to a bank near you | CNN Business

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The Federal Reserve has launched the first phase of an instant payment infrastructure called FedNow Service that promises to make the option of safe, real-time payments much more widely available

While payment processing at financial institutions has become faster over the years — and some large players already are part of a “real-time payment” network — many people still may have to wait at least one business day to have access to 100% of deposits they receive or for payments they make to clear.

An insurance company, for instance, could make an immediate payment to help a policyholder whose home or car was damaged by a devastating storm. It also can help speed access to payment of government benefits. And depending on how a bank chooses to design an instant payment service using the FedNow infrastructure, it also may allow for customers to send payments to friends and family to cover things like their share of dinner out last night.

 

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