FedNow is a proposed new real-time payments service from the Federal Reserve. It has been developed as part of an effort to modernize and improve payment services in the United States, which have traditionally relied on slower methods such as checks and wire transfers. FedNow would be available 24/7, allowing payments to clear almost instantly between financial institutions regardless of location or time zone.
FedNow is designed with several key features that make it more secure than traditional payment systems:
•Biometric authentication – This ensures only authorized users can access their accounts using fingerprint scanning technology or other forms of biometrics like facial recognition.
•Strong encryption – All data sent through FedNow will be encrypted so that it cannot be intercepted by unauthorized users while in transit.
•Account verification – Each transaction must first go through a process where both parties’ identity and banking information are verified before the transfer can take place, reducing fraud risk significantly compared with cash transactions.
The launch date for Fednow has not yet been announced but if approved by Congress it could become operational sometime in 2020 or 2021 depending on how quickly development progresses.. Once launched, banks across the country should begin offering this service to their customers shortly after its release date so they can enjoy faster payments without having to wait days for funds to clear into their account .
In addition, businesses may also benefit from reduced processing fees associated with making large numbers of small payments at once due to increased automation provided by this system over traditional ones – providing them greater efficiency when dealing with payrolls or payouts related activities etc… Finally security measures based around 2 factor authentication (2FA) , strong encryption algorithms used & fraud detection techniques applied during each transaction help reduce fraudulent activity ensuring confidence about user’s money being safe even when transacting online .
