{"id":4663,"date":"2019-08-07T18:54:11","date_gmt":"2019-08-07T18:54:11","guid":{"rendered":"https:\/\/www.paymentfacilitator.com\/?p=4663"},"modified":"2023-01-18T09:50:36","modified_gmt":"2023-01-18T16:50:36","slug":"fintech-leaders-call-feds-real-time-payments-system-the-generations-true-payment-milestone","status":"publish","type":"post","link":"http:\/\/infinicept.com\/payment-facilitator\/archive\/fintech-leaders-call-feds-real-time-payments-system-the-generations-true-payment-milestone\/","title":{"rendered":"Fintech Leaders Call Fed\u2019s Real-Time Payments System \u201cthe Generation\u2019s True Payment Milestone\u201d"},"content":{"rendered":"\n

An organization representing leading fintech companies including Square and Stripe celebrated news from the Federal Reserve this week, as the Fed outlined its plans to invest in real-time payments infrastructure.<\/strong><\/p>\n\n\n\n

In a\u00a0speech<\/a> on Monday, Federal Reserve Governor Lael Brainard announced that the Fed plans to develop a real-time payments and settlement system called the FedNow Service. She noted that, currently, it can take days for individuals or businesses to have access to their funds.<\/p>\n\n\n\n

\u201cWith a Federal Reserve real-time retail payment infrastructure, the funds would be available immediately\u2014to pay utility bills or split the rent with roommates, or for small business owners to pay their suppliers,\u201d she said.<\/p>\n\n\n\n

Brainard pointed out that households with limited incomes could benefit from such a system by avoiding overdraft or late fees. <\/p>\n\n\n\n

\u201cSimilarly,\u201d she continued, \u201cgetting immediate access to funds from a sale in order to pay for supplies can be a game changer for small businesses, potentially avoiding the need for costly short-term financing.\u201d<\/p>\n\n\n\n

The new service would introduce a rival to the Clearing House, a system developed and owned by some of the country\u2019s largest banks, including J.P. Morgan Chase and Bank of America. According to the Washington Post<\/a>, big banks oppose a Fed-run system, arguing that it could enable technology companies to further insert themselves into financial services. <\/p>\n\n\n\n

Some of those technology companies, represented by the organization Financial Innovation Now (FIN), have publicly\u00a0supported the formation of such a system. In December, the Federal Reserve invited comment on a proposal to develop this service, prompting a\u00a0letter of support from FIN that was signed by its members Square, Stripe and PayPal, as well as Intuit and tech giants Apple, Amazon and Google.<\/p>\n\n\n\n

Following the Fed\u2019s Monday announcement, FIN released a new statement applauding the move.<\/p>\n\n\n\n

\u201cToday the Federal Reserve Board is taking a bold step into the future. Real-time payments can improve the economy, grow small businesses, and help American consumers keep up with everyday needs. FIN has long argued to policymakers that sending money should be as fast and easy as sending a text message. That future will not come for all Americans unless the Fed acts to ensure wide adoption of a real-time payments infrastructure that serves the economy and public interest,\u201d Brian Peters, FIN\u2019s executive director, said in the statement.<\/p>\n\n\n\n

\u201cAmerica\u2019s payment infrastructure is long overdue for an upgrade, and today we heartily commend the Board\u2019s resolve and leadership, which will result in a foundation for America\u2019s future innovation. FIN looks forward to working with the Federal Reserve on a timely process that benefits all payment system users and stakeholders. This decision is a giant step forward, and history will look back at today\u2019s announcement as the generation\u2019s true payment milestone,\u201d Peters said.<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

An organization representing leading fintech companies including Square and Stripe celebrated news from the Federal Reserve this week, as the Fed outlined its plans to invest in real-time payments infrastructure.<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","_FSMCFIC_featured_image_caption":"","_FSMCFIC_featured_image_nocaption":"","_FSMCFIC_featured_image_hide":"","footnotes":""},"categories":[1015],"tags":[44,59,293,299,303,357,419,658,739,828,846],"class_list":["post-4663","post","type-post","status-publish","format-standard","hentry","category-archive","tag-amazon","tag-apple","tag-federal-reserve","tag-financial-innovation-now","tag-fintech","tag-google","tag-intuit","tag-paypal","tag-real-time-payments","tag-square","tag-stripe"],"acf":[],"_links":{"self":[{"href":"http:\/\/infinicept.com\/payment-facilitator\/wp-json\/wp\/v2\/posts\/4663","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/infinicept.com\/payment-facilitator\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/infinicept.com\/payment-facilitator\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/infinicept.com\/payment-facilitator\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"http:\/\/infinicept.com\/payment-facilitator\/wp-json\/wp\/v2\/comments?post=4663"}],"version-history":[{"count":3,"href":"http:\/\/infinicept.com\/payment-facilitator\/wp-json\/wp\/v2\/posts\/4663\/revisions"}],"predecessor-version":[{"id":9030,"href":"http:\/\/infinicept.com\/payment-facilitator\/wp-json\/wp\/v2\/posts\/4663\/revisions\/9030"}],"wp:attachment":[{"href":"http:\/\/infinicept.com\/payment-facilitator\/wp-json\/wp\/v2\/media?parent=4663"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/infinicept.com\/payment-facilitator\/wp-json\/wp\/v2\/categories?post=4663"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/infinicept.com\/payment-facilitator\/wp-json\/wp\/v2\/tags?post=4663"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}