Fed’s real-time payment system coming as early as May ’23

NEW YORK — The Federal Reserve’s new real-time payments system known as FedNow is expected to go live as early as May 2023, a Fed official said Monday. While the Fed has been developing FedNow, other banks and the entire cryptocurrency industry has been pushing for its own alternatives for real-time payments. Speaking Monday via webcast to a FedNow early adopter workshop in Rosemont, Illinois, Fed Vice Chair Lael Brainard said she expects the system to launch between May and July next year. “Having the capacity to manage money in real time could help households avoid costly late payment fees or free up working capital for small businesses to finance growth,” Brainard said.