Tag Archives: Fednow

A2A, Fed Now and “Instant” Payments – Threat to V/MA? Nope

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Short Blog – Free Content

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My good friend Dave Birch wrote a piece in Forbes last week on Account to Account transfer threat to V/MA. I wanted to provide an alternate view. This will likely be a multi-part blog.. today I’m starting with the consumer and the merchant (from a US perspective).

No new information for my frequent readers, just pulling together some of the latest data (see PIX below).

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FedNow Hurdles and Opportunities

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Short Blog – Follow Up to Last Week’s FedNow Update 

I’ve got 4 blogs in queue with Part 5 – Future of Retail Banking coming next week. I’ve been asked to expand beyond my pro-network bent into areas like FedNow, PayPal, Stripe and Asia… etc and I will oblige. For today, drilling down on FedNow’s opportunity and the key barriers for “break out growth” (expanding on the last 2 bullets within 22 Feb FedNow blog).  Feedback appreciated.

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FedNow Update – Short Blog

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My last blog on topic was less than a month ago Real Time Payments in US – Strategic Shifts (Jan 2023), and also FedNow (Dec 2021). Will thus keep this blog to summary bullets. 

  • FedNow launching this summer with almost 100% of US merchant focused banks participating. At launch, both credit and debit ( Request for Payment -RfP) transactions will be supported.

  • Great summary interview last week from FRB’s Mark Gould

  • Back in 2013, the Fed requested comments on a real-time payment system. In general, consumers don’t seek to pay their bills faster, nor do consumers have issues in receiving their payroll deposits late. The card environment works very well, particularly for debit. Emergency bill payment has been the only well-defined consumer need for speed (see Starpoint’s 2013 response to Fed). 

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Real Time Payments in US – Strategic Shifts

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Short Blog. I’ll expand on this next month. 

As I’ve written about since September, and seen in yesterday’s press (WSJ), top US issuers are have created a new consortium with a first phase product centered on a white labeled SRC wallet. For investors, 100% of payment types in this wallet will be existing cards (no new retail payment network). Their partners are the key eCom gateways (Stripe, Square, Shopify, …etc). 

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FedNow

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Very short Blog – Recapping a few tweet streams.

I think FedNow is a great effort to provide an open alternative to TCH’s RTP. I’ve spoken with, and consulted for, the KC fed on a number of occasions and provided my input to the FedNow service back in 2013. Per my blog last week the survey result from the Fed’s efforts found “emergency bill payment” as the top consumer use. Paying someone faster brings on risk. The Fed depends on banks to manage risk and price that risk. As a former banker running payments at 2 of the largest banks I have a view here.

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A2A, Fed Now and Real Time – Threat to V/MA? Nope.

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Sorry for typos

My good friend Dave Birch wrote a piece in Forbes today on Account to Account transfer threat to V/MA. I wanted to provide an alternate view. This will likely be a multi part blog.. today I’m starting with the consumer and the merchant (from a US perspective). 

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