However, unlike UPI in India, neither banks nor businesses are required to support FedNow, so adoption will likely be slow, especially because the traditional (and more expensive) credit card based payment system is already firmly established.
There is also another upcoming system called RTP, which is very similar to FedNow, but is governed not by the Fed, but privately by the The Clearing House, an association of large US banks. The piece above mentions that both implement ISO 20022, which could allow future interoperability.
This piece mentions FedNow, an instantaneous 24/7 bank transfer system for the US, whose launch happens to be imminent. Details:
https://www.clevelandfed.org/collections/speeches/2023/sp-20...
However, unlike UPI in India, neither banks nor businesses are required to support FedNow, so adoption will likely be slow, especially because the traditional (and more expensive) credit card based payment system is already firmly established.
There is also another upcoming system called RTP, which is very similar to FedNow, but is governed not by the Fed, but privately by the The Clearing House, an association of large US banks. The piece above mentions that both implement ISO 20022, which could allow future interoperability.