Wharton FinTech Podcast Instant Payment Special Panel - One-Year Anniversary of FedNow's Debut
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Jul 26, 2024 In this insightful discussion, Nick Stanescu, Chief FedNow Executive, Carlos Brandt, Senior Advisor at the Central Bank of Brazil, and Rocio Wu, Principal at F-Prime Capital, delve into the evolution of instant payments. They share updates on FedNow's rapid adoption, now involving nearly 900 institutions. The panel highlights the transformative impact of Brazil's Pix on financial inclusion and contrasts it with U.S. challenges. Innovations in digital payments, fraud management, and collaborative efforts between fintechs and banks are also explored, painting a vibrant future for the payments landscape.
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FedNow's First Year
- FedNow, the Federal Reserve's instant payment system, launched in July 2023 and has quickly grown to nearly 900 participating institutions.
- Initial use cases include account-to-account transfers, meet-me payments, and digital wallet funding.
Pix and Financial Inclusion
- Pix, Brazil's instant payment system, significantly boosted financial inclusion by offering a free and easy way to make digital payments.
- Its simple user experience across all platforms has been key to its wide adoption.
US vs. Brazil Payment Landscape
- The U.S. and Brazil have different payment landscapes, affecting real-time payment adoption.
- Brazil's longer card settlement times and higher merchant fees make instant payments more attractive to businesses.