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Faster Payments: Does The Fed Have A Hidden Agenda?

PYMNTS

Connecting these two dots suggests a few important things that, for banks and card networks, might be the 2020 hindsight that could have come in handy had they stopped to look backwards a few years ago: That the Fed has much more than a passing interest in how faster payments are run in the U.S. A Couple of Important Dots.

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Why FedNow Will Slow Real-Time Payments

PYMNTS

Direct deposit over the ACH network eliminated that friction and got them earlier access to those funds. Fast-forward four decades, and everyone – FIs, ACH operators, FinTechs – have been working overtime to get payroll off the paper check and to get wages into workers’ bank accounts faster.