An Update on the Federal Reserve’s Instant Payments Service: FedNow®

Loretta Mester

Speech from Federal Reserve Bank of Cleveland

Abstract: I thank the organizers for inviting me to update you on the FedNow® Service, the Federal Reserve’s new instant payments service. When the FedNow Service begins to roll out later this month, it will be the first new Fed payments rail in 50 years. A well-functioning and secure payment system is vital to our economy. As we modernize the payment system, it is important to remember that the foundation of a successful payment system is the public’s confidence in it. The public needs to be confident that the system will be: available whenever the customer needs it; efficient at routing and settling payments; resilient against cyberattacks and fraudulent actors; and reliable without the public having to know the intricacies of the infrastructure behind it. As the payment system evolves, the Fed, the industry, and end users will need to continue to collaborate to ensure that the modern payment system lives up to its promise of being efficient, safe, resilient, and available to all. That’s the best way to maintain the confidence of the public the Fed serves.

Keywords: Payment; systems (search for similar items in EconPapers)
Pages: 22
Date: 2023-07-12
New Economics Papers: this item is included in nep-pay
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