Faster Payments with FedNow

Jared Franklin, an investor at Costanoa Ventures and long-time fintech operator, provides an overview of where we’re at (and where we might be heading) with faster payments in the U.S.

Defining faster payments
There are three main attributes for the definition of a Faster Payments System according to Faster Payments Council:

Systems must enable immediate funds availability to the beneficiary.
System must be available 24 x 7 x 365.
System must allow for instant confirmation to sender and receiver.

Value & use cases
Financial supply chains (in the US) have innovated slower than actual supply chains. More times than not, it still takes a few days just to transfer money between your own accounts at different banks. You can often receive an order from Amazon faster than Amazon can receive your payment. Faster payments can improve the experience for various use cases, and should be able to spur new use cases that weren’t possible.

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