And now comes the real test.
Almost four years ago, the Federal Reserve announced that it would develop a “round the clock real time payment and settlement service” that would underpin faster payments.
Enabling the instant transfer of funds 365/24/7 is, and has been, a massive undertaking. Developing FedNow, a new nationwide payments infrastructure — the first in roughly 40 years — has required the support and input of banks, FinTechs and of course the private sector.
And starting Thursday (July 20) we’ll see how concept and testing will translate into reality.
It remains to be seen whether the embrace of instant payments will be instantly felt, or at least widely and wildly embraced, or if there’ll be a slow burn of sorts.
Perhaps even a fizzle, initially, should there be glitches in the mix?