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Federal Reserve announces real-time payments system

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Everett Toliver
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The US Federal Reserve Board has announced its real-time payments system called FedNow.

The service is being developed now and will be available by 2024, Federal Reserve said Monday, and will be "ubiquitous, safe and efficient."

Real-time payments systems already exist, such as Venmo and banking apps.

But the Federal Reserve said most current services are "closed loop" so only people with the same app can transfer money to each other, and some apps cannot reach all 10,000 different banks that exist across the US.

For the new inter-bank system, the Federal Reserve will speed up its settlement and clearing processes for payments between different banks.

It will be available 24/7, 365 days a year, and will be initially limited to $25,000.

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