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Wharton FinTech Podcast

Instant Payment Special Panel - One-Year Anniversary of FedNow's Debut

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.
48:33

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Quick takeaways

  • The rapid adoption of FedNow by nearly 900 financial institutions within its first year illustrates the growing demand for instant payment capabilities in the U.S.
  • Brazil's PIX system has successfully enhanced financial inclusion by facilitating easy digital transactions, drastically transforming its payment landscape and access to services.

Deep dives

Growth and Goals of FedNow

FedNow, the Federal Reserve's new instant payment system, has seen significant growth in its first year, with nearly 900 financial institutions now onboarded compared to just 35 at launch. This remarkable uptake reflects a strong enthusiasm for instant payment capabilities in the market, and the primary goal is to ensure that all eligible U.S. financial institutions can leverage this service. Customers from participating banks and credit unions have started using instant payment features across various channels like mobile apps, enhancing their cash management experiences with the ability to access funds and execute transactions in real time. The excitement surrounding FedNow lies in its potential to streamline a range of payment scenarios, from instant wage access to emergency payouts, indicating only the beginning of innovation within the payment sector.

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