Fed announces intention to create new payment system

[MichaelB]

The US Fed announced this week a plan to create a new payment system that operates continuously 24/7 and would carry out transfers and payments in real time. The Fed web site for this is here. A Reuters report on this is here.

This payment system will compete with banks. This is a real shot in the arm for smaller banks, businesses and consumers.

 

[pb4uski]

Let's hope the design and implementation is better than healthcare.gov.

 

[ncbill]

ACH works well for me (not real-time of course)

 

[jebmke]

Finally catch up with where Europe was 20 years ago.

 

[strobot]

The US is one of the few countries that can't already do this. When I was living in Korea it was the norm. You could transfer money from your checking account to people while out at dinner to split the check. It was an instantaneous transfer (as long as it was under a certain limit). The US was also extremely late adopters to having the chip inside of our cards as well...
We usually catch up, just takes us about a decade longer than most countries. Not that that is a bad thing necessarily.

 

[timbervest]

The US is one of the few countries that can't already do this. When I was living in Korea it was the norm. You could transfer money from your checking account to people while out at dinner to split the check. It was an instantaneous transfer (as long as it was under a certain limit). The US was also extremely late adopters to having the chip inside of our cards as well...
We usually catch up, just takes us about a decade longer than most countries. Not that that is a bad thing necessarily.

Isn't that Venmo?

 

[strobot]

Isn't that Venmo?

Conceptually, yes. But venmo is still limited by the banking system and regulations themselves. I've used venmo in the past as well hoping it was the same, but it still took around 2 days to transfer the money into my checking account from the time that the person sent me the money. Plus they charge a fee if you want it "instant". Wasn't like that in Korea; free instantaneous transfers between checking accounts. You just had to have the account number of the person you were sending money to (could be between different banks as well).

https://help.venmo.com/hc/en-us/articles/115015844068-Instant-Transfers-FAQ

 

[bolt]

Let's hope the design and implementation is better than healthcare.gov.

Aint that the truth!

Federal Reserve is incorporated akin to FED EX Delivery.
Its a a private corp.that lends wealth to the .gov.
Buyer beware....