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Earlier this week, League President/CEO Todd Mason submitted a comment letter to the Board of Governors of the Federal Reserve in support of its plan to introduce FedNow, a real-time payment and settlement service. FedNow is expected to launch in 2023 or 2024 and will offer much needed competition for real-time payments services, especially for small and rural credit unions.
In his letter, Mason stated, “The Fed should use FedNow as a tool to create a fair and honest means to keep real-time payment service costs and fees in check. This is critically important to our rural credit unions and their members as well.”
CUNA has been a longtime advocate for the development of a real-time payments network. It previously submitted a comment letter endorsing the Fed’s entry, as did the Independent Community Bankers of America, the Merchant Advisory Group, Consumer Reports, and an alliance of leading technology firms including Apple, Amazon, and Google.
“Smaller institutions may not be able to afford a real-time payments platform, but FedNow will most certainly generate a check and balance on providers to ensure real-time payments are available across our nation and not just in economically affluent areas,” stated Mason.
To view Mason’s letter, click here.