by: Alysha Pruitt Harvey, MAcc, EA, CTS, CTC, CTP, People Advisor

Hey Distinct Client guess what? The U.S. government is finally catching up with the times and launching its own instant payment system this summer called the FedNow Service. That's right, no more waiting days for your money to transfer or payments to clear. With FedNow, you can say goodbye to those annoying delays and hello to real-time transactions.

Now, I know what you're thinking. "But DISTINCT, private companies like Venmo and Cash App have been doing this for years. Why is the government so behind the curve?" And to that, I say, who knows? But the important thing is that they're finally catching up and giving us a government-backed option for instant payments.

So, what is FedNow exactly? It's a real-time payments system created and backed by the government that financial institutions can use to send and receive funds almost instantly. No more waiting a few business days or biding your time over holidays and weekends. This means faster and smoother operations for businesses and the ability to make payments within seconds for individualsBut here's the catch - the FedNow system is only open to financial institutions within the Fed's network. So, unfortunately, private money-transfer apps like Venmo and Cash App won't be a part of it. But hey, that's why we have options, right?

So when is FedNow launching? The Fed initially set a debut date of 2024, but they've ramped up the deadline and plan to launch sometime between May and July of this year. And with the heavy consumer demand for instant digital transactions, I have a feeling it's going to be a game changer.

Overall, FedNow will open the door to thousands more financial institutions that will be able to offer instant transactions for consumers and businesses. And that's a big deal. So, get ready to say goodbye to those pesky delays and hello to real-time transactions with the government-backed FedNow Service.

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