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Fed’s Real-Time Payments System to Compete With Wall Street (2)

Aug. 5, 2019, 5:47 PMUpdated: Aug. 5, 2019, 8:50 PM

The Federal Reserve, rebuffing an intensive Wall Street lobbying campaign, plans to create a real-time payment system that will compete with a venture formed by big banks.

The FedNow Service, set to begin operating by 2023 or 2024, will modernize the payments infrastructure by allowing money to be moved almost instantly at every hour of every day, the regulator said in a statement Aug. 5. The system could give consumers and businesses more flexibility in managing money and making time-sensitive payments, the Fed says.

“Immediate access to funds could be especially important for households on fixed incomes or living paycheck ...