Federal Reserve Opens FedNow Service That Dramatically Speeds Up U.S. Payments

The Fed says its new service will operate for 24 hours every single day. While continuing to use commercial banks as intermediaries, central bank officials have previously said it will allow payments to be processed in a matter of seconds, something that’s already the norm in many other jurisdictions across the world. That compares to a same-day service from the existing U.S. automated clearinghouse system, or delays of days or weeks for cashing a check.