The Federal Reserve plans to launch its own instant payment system, called the FedNow Service (FedNow), this summer. Though FedNow is years behind tech-based private-sector competitors in terms of capability & features, it will be a game changer for transactions in the U.S. It will be the first—and only—digital instant-payments system that is both created and backed by the U.S. government.

According to Frbservices.org, the FedNow service “is a new instant payment infrastructure developed by the Federal Reserve that allows financial institutions of every size across the U.S. to provide safe and efficient instant payment services.” Does that sound familiar? do you have a Cash App or Venmo?

Yes, It’s exactly like Cash App and Venmo.

What is the purpose of the FedNow Service?

When financial institutions participate in the FedNow Service, businesses and individuals can send and receive instant payments in real-time, Similar to Cash App and Venmo, around the clock, every day of the year. Financial institutions such as JP Morgan Chase, Wells Fargo, and Bank of America and their service providers can use the service to provide innovative instant payment services to customers. Recipients will have full access to funds immediately, allowing for greater “financial flexibility” when making time-sensitive payments.

When will the FedNow service be available?

The FedNow Service will be deployed in phases, with the initial launch taking place in July 2023.

How will the FedNow Service work? VIDEO

Sign up for FedNow Email Notifications.

Are there any problems, risks, or complications?

Given the details we’ve outlined, Fednow will be the intermediary between your bank account, and the business, or person you’re trying to send money to. How can this be an issue? FedNow service will be the funnel all money gets cycled through, now that we know this information, does this mean the federal government has full access to your bank account? Yes, indeed it does.

In the fine print, FedNow indicates that the service is “programmable” meaning what? some speculation includes the service can pause the money flowing into or out of your account at will. For example, if you’d like to purchase something such as ammo or something out of the ordinary, the service can reject your transaction before it gets to the business.

Do you think this service will be better than Cash App, Zelle, or Venmo?

A lot of people are planning on rejecting this service, will you reject or accept this service? let us know in the comments.