It is arguably the front runner for the biggest story in payments for 2023. When the FedNow faster payments platform launches sometime in the late spring or early summer of next year it will create a new real-time payment infrastructure that exceeds the reach of private sector providers The Clearing House and NACHA. Concerns about interoperability with those systems still abound. But at its core, there’s no doubt that FedNow will expand the scope of faster payments to more banks, more businesses and more consumers.
“Corporate end users want to navigate the developing multi-network world without concerns about the underlying payment type,” wrote Aite-Novarica analyst Erika Baumann recently. “They want the FI or payment provider to choose the network based on the desired customer experience and factors such as speed, limits, fraud, reachability, cost, and known payee information. As real-time adoption increases, this type of true any-payment routing and integrated payable capability is going to be much easier with RTP/FedNow because both are based on ISO 20022 and will have similar, if not completely interoperable, messaging.”
Bottomline has assembled the infographic linked here to serve as a resource for banks and other businesses as the chatter around FedNow grows toward its eventual launch.
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