The U.S. Federal Reserve launched FedNow Service Thursday, a long-awaited system aimed at modernizing the nation's payment system and enabling Americans to send and receive cash in seconds.

As part of the FedNow early adopter program, 35 banks and credit unions have tested FedNow and can accept instant payments. Those early adopters who have developed payment services for their customers could go live immediately—including JPMorgan Chase, BNY Mellon, Wells Fargo, U.S. Bank, and Peoples Bank.

Other banks and credit unions will be able to join FedNow immediately, but real-time payments will likely not be available to cust💙omers for a number of years as financial institutions develop the▨ir services, according to the Fed.

Not Digital Currency

Despite claims of social media, FedNow is not a 澳洲幸运5官方开奖结果体彩网:digital currency or a replacement for the U.S. dollar. Instead, it is intended to act similarly to other money transfer apps like Venmo or PayPal. However, its aim is not to replace these services. Instead, it hopes to work alongside them.

“The FedNow Service is neither a form of currency nor a step toward eliminating any form of payment, including cash,” said the Federal Reserve via Twitter.

It competes with private sector real-time payment systems, including The Clearing House's RTP network, and was initially opposed by big banks. However, many have since agreed to participate because FedNow will allow them to offer clients more services.

"For us, FedNow really is a wonderful way of expanding reach," said Anu Somani, head of global payables and embedded payments at U.S. Bank as reported by Reuters.

Good News for Consumers

Banks and credit unions must still decide whether to join the system and then develop apps or websites so their customers can send and r🦋eceive money. Paying via the network requires that both parties have bank accounts that are part of the network.

Consumers won't have to pay for FedNow, but it's unclear whether participating banks will pass on any of the costs of developing their own platforms. Smaller banks, which often connect to FedWire through larger lenders, encouraged the Fed to develop FedNow, claiming it would allow them to access real-time payments without paying larger competitors.