New instant payment system launched by the Fed
COLUMBIA, S.C. (CNN)— The Federal Reserve is building a new instant payment system to help people and companies receive their money faster.
It’s call the Fed Now Service. It’s designed to make safe, real-time payments more widely available.
The system eliminates waiting periods for payments to clear allowing people or businesses to access paychecks or other payments instantly.
It also operates around the clock 24/7, which would bypass limitations like business hours and bank holidays.
Right now, only 35 banks and credit unions are certified for the new system, but the Fed is hoping to eventually have thousands of financial institutions on board.
