Member-only story
MONEY
Who Might FedNow Hurt in Tech or Consumers?
Did you just say, “Fed Who?”
If you did ask “Fed Who?”, don’t feel badly; so did I when I came across this announcement.
At first I thought, “Oh, that’s nice.” Heck, were I still working, I’d like getting paid instantly, which is what FedNow does: instant bank to bank (or credit union) transfers for businesses. And yes, even now I’d like my Social Security money and my retirement fund withdrawals to settle instantly. Yay!
But then I thought, sure, but if I’m on the sending side of this, wouldn’t I rather keep my money compounding interest for a few more days? I’m never in a rush to see money leave my bank, are you?
Well, maybe sometimes. If I were buying something I want right now and the seller wants my payment before handing it over, sure, I’d like this. I might be annoyed, but if that’s the only way I’m taking possession of my new 20 passenger jet for me and our friends to fly to my private island for my wife’s birthday party, fine, take my money now.
