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The U.S. Federal Reserve has launched most awaited modernise service for all Americans to send and receive transactions in seconds with 24/7 availability.FedNow will now facilitate the instant real time payment with Secure Transfer,Smoother Experience in seconds now with 24/7 availability.
What is FedNow Service :
- FedNow Service will allows individuals and businesses to send and receive money. United Sates Federal has made live FedNow on July 20, 2023.
- The “FedNow” service will make hassle free transfers to and from in day to day life avoiding delay of settlement,Earlier it used to take one day to receive payments which has impact on Americans life.
- Americans can be benefited from FedNow service to get transactions flowing instantaneously between sender and receiver
History of FedNow :
- Before FedNow 2023, Fed has launched ‘’FedWire” is also one of the service launched but it was only for corporate payments with large system with limitation of Real time payment settlement within business hours.
- Countries is Asia,Europe has already launched real time payment system which has made significant transactions increase in the small business.
- India has launched UPI(Unified Payment Service) which is making millions transactions daily across country which is one of the example of real time payment service success.
Unique Features of FedNow Service :
- FedNow Service Payments directly settled into central bank which make him unique from PayPal and Venmo peer to peer service.
- Low, Moderate Consumers will be mostly benefitted from FedNow which makes their transactions instant along with security of sender and receiver. It will make business more smoother and instant.
- FedNow service is free for every customers in United States of America with a maximum payment limit of $500,000 but banks can choose to lower the limit if applicable.