“To support widespread adoption of instant payments, the Federal Reserve is offering key pricing discounts for new FedNow Service customers in 2023,” the Federal Reserve said in a Tuesday (Nov. 8) press release.
These discounts include a waiver of the $25 monthly service fee as well as a discount of the $0.045 customer credit transfer fee on the first 2,500 customer credit transfers per month. Those add up to annual values of $300 and up to $1,350, respectively, according to the release.
Other FedNow Service fees that will begin upon the general availability of the service include a liquidity management transfer fee of $1, a request for payment fee of $0.01 and a return customer credit transfer fee of $0.045, the release said.
The Fed is fine-tuning its focus to streamline the embrace and use of digital, speedier payments, Mark Gould, chief payments executive for Federal Reserve Financial Services at the Federal Reserve, told PYMNTS in an interview posted Nov. 3.
The launch of the FedNow Service will be a signature milestone as the instant payments system is set to debut, allowing individuals and all manner of businesses access to real-time transactions through their financial institutions.
The goal is to make it possible for any American consumer or business to get, and send, money instantly, whether to or from a friend, a family member, a business or to pay a bill, and likewise, to enable participating financial institutions to instantly clear and settle those payments.
“That’s completely revolutionary in payments,” Gould said, adding that the Fed expects that FedNow will be used as a platform for future innovation.