this post was submitted on 23 Jul 2023
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Does Elon Musk (or CEO Linda) know about FedNow? (www.cnbc.com)
submitted 1 year ago* (last edited 1 year ago) by ShittyBeatlesFCPres to c/technology
24 comments fedilink hide all child comments
 

The Federal Reserve has already launched a small test of near-instantaneous financial transactions. Every time they talk about payments as a future feature of X/Twitter, I wonder if they know that’s getting Sherlocked.

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[–] cyd 41 points 1 year ago (4 children)

Many countries, including those in the developing world, have had instant payments systems for years. They're very convenient, especially those that provide an "overlay" service (usually coming with a standardized app) that allows sending money to registered phone numbers, without dealing with bank account numbers.

Characteristically, the US version of instant payments seems half-assed. It's initially supported by only 35 banks (not including Citi and Bank of America). And it apparently does not provide a standardized overlay service. Many big financial stakeholders, including the credit card companies, no doubt view it as a threat and would be very happy if it does not catch on.

[–] Dark_Blade 10 points 1 year ago (1 children)

It’s honestly amazing how quickly a lot of developing countries have embraced this stuff. Hell, even roadside hawkers in a country like India accept instant bank transfers. It’s ridiculous that the US is so far behind.

[–] Sanctus 3 points 1 year ago

No, because corporations like PayPal and Meta lobby against it. They got it don't worry about it.
/s

[–] [email protected] 5 points 1 year ago

Yes, writing this from Western Europe Americans not being able to wire each other money instantly is so confusing.

[–] [email protected] 2 points 1 year ago (1 children)

As far as an overlay service goes, Zelle basically fills that niche, and it's increasing in popularity. I think FedNow is more for larger payments.

[–] [email protected] 3 points 1 year ago

Zelle still takes a few days to complete transfers in my experience

[–] [email protected] 0 points 1 year ago

It is hard to get away with the crimes the bankers and other big finance entities have grown accustomed to committing as a part of their day to day business with instant resolution. Read up on failing to deliver, or as entities like Citadel like to term it, “sold, not yet purchased", like they did to the tune of 60B dollars.

It is like selling someone a house that you don't own and may not even really exist. They can do this because they have a time period in which they have some leeway before they have to deliver the “deed" so to speak. It goes deeper than that but that is a simplified high level overview of the scam.

Simply put, the stock market is all fake and nothing is valued appropriately because price discovery us impossible with naked shorting and the use of OTC and dark pools.

[–] livedeified 8 points 1 year ago (2 children)

interesting stuff. I wonder how it's developed since that article was published.

[–] ShittyBeatlesFCPres 19 points 1 year ago (1 children)

It launched at a few banks a couple of days ago. https://techcrunch.com/2023/07/21/fednow-is-finally-live-in-the-us/

So, I guess it’s in late beta stage where a limited private beta will happen for a bit and then we’ll see how it goes.

It’d honestly be great for small businesses and workers. No more waiting multiple days for a payment to clear and money to become available.

[–] cyd 11 points 1 year ago (1 children)

It's also great for splitting checks at restaurants, paying for odd jobs, and paying street vendors. Many countries already have instant payments, so it would be nice if it caught on in the US, but you never know

lots of nice things don't catch on in the US for one reason or another.

[–] [email protected] 4 points 1 year ago

for one reason or another

Money. The reason is money.

[–] TheOneWithTheHair 3 points 1 year ago (2 children)
[–] DocMcStuffin 11 points 1 year ago

Depends on how you look at it. According to the article, FedNow is more expensive than automatic clearing house. 4 cents vs half a cent. But if FedNow is competing with Venmo and Paypal, they charge a lot more than the Fed's $0.04. That's also cheaper than what the credit card companies charge businesses.

[–] [email protected] 7 points 1 year ago

The banks might choose to make it costly. The fed charges 4 cents per transaction. Ultimately, if your bank charges 25 cents and my bank charges 4 cents, I'll just decline to use your bank for FedNow

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