Read the original ABA Risk and Compliance article here.
Here is a brief summary of the article:
- FedNow has over 300 participating banks, but there are still nearly 10,000 banks and credit unions.
- Most participants opt to receive instant payments, with common use cases being earned wage access, loan funding, and insurance payouts.
- Banks hesitate due to ATO fraud and payment cannibalization.
- Instant B2B payments solve a real problem for businesses and have differentiators that could mitigate banks’ concerns about FedNow.
