In terms of expectations, the American consumer is running ahead of the payments engines that help drive their everyday financial lives.
That explains the “let’s get going” tone among some in the financial services world to the Federal Reserve’s recent announcement that it plans to develop FedNow, an around-the-clock real time payment and settlement service.
“I think a lot of consumers would be surprised to learn that their payments are not occurring in real time already,” says Glen Sarvady, veteran financial services analyst and principal at 154 Advisors in Atlanta, GA.
Sarvady says the Fed’s move to join the growing movement of money in real time or close to it will help reduce the confusion and irritation consumers feel when they find out a payment hasn’t settled immediately or a deposit is being held.
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