Ranking Member Waters Celebrates Federal Reserve's Launch of Instant Payment

Statement

"I applaud the Federal Reserve for the launch of its new instant payment service, FedNow. This service, which I've long called for, will modernize our nation's payment system. As banks and credit unions sign up to the service, it will ensure that consumers and small businesses are able to instantly send money, receive paychecks, and access funds 24 hours a day, seven days a week. As we have seen, delays in our nation's payment systems often meant that customers would have to wait days to gain access to their own funds. These delays forced many, particularly consumers in low-income communities, to resort to costly alternatives like payday loans, which charge high-interest rates, or incur expensive overdraft fees. FedNow is a faster and more efficient payment system that will help consumers to save. Not to mention, it stands to bring significant benefits to small businesses everywhere as they transmit money with third-party vendors and pay their employees.

I am pleased that 41 banks and 15 service providers are already utilizing the service, and that the Fed plans to onboard many more institutions this year. This will help to expand this critical service to communities across the country, giving consumers and small businesses instant access to their money that they deserve."

Source