Federal Reserve to Launch , Instant Payments Service.<br />The U.S. Federal Reserve is set to launch "FedNow," a long-awaited system that will allow Americans to send and receive money instantly around the clock, Reuters reports.<br />The service has been in <br />development since 2019.<br />Previously, cash transfers via the <br />Fed took several days to settle.<br />Other countries, such as Brazil, India, the United Kingdom and the European Union, have been ahead of the U.S. with instant services for years, Reuters reports. .<br />FedNow will first launch with 41 banks <br />and 15 service providers but will onboard more institutions later this year.<br />For us, FedNow really is a wonderful way of expanding reach, Anu Somani, head of global payables and <br />embedded payments at U.S. Bank, via Reuters.<br />We want our clients to benefit <br />from these capabilities, and we want <br />that to be a competitive edge for us, Carl Slabicki, global co-head of payments for <br />BNY Mellon’s Treasury Services, via Reuters.<br />Having the Fed in the space makes <br />our members feel more comfortable that their needs will be met, that they will be treated fairly for pricing, Lance Noggle, senior vice president <br />of operations and senior regulatory counsel at the <br />Independent Community Bankers of America, via Reuters.<br />Consumers will not incur any charges <br />when using FedNow, Reuters reports.<br />A maximum payment limit of <br />$500,000 has been established, but <br />banks can lower that cap if they'd like
