Comment by Mortiffer
3 years ago
Amazing news. Kinda sad to see that Stripe was not on the list of early adopters but I'm sure they will implement it soon.
In Switzerland we build an awesome eBill system ontop of the equivalent thing to FedNow. Its all run by Six Group which is the biggest Stock Exchange but it is jointly owned by the big banks and government. So they all agreed to add this eBilling system. Its so much superior to having paper come in the mail all the time.
So much is possible once you have instantly confirming transactions supported by all banks. Suppliers can assume all possible customers have a bank account that can do this in contrast to the crazy world of sending paper checks by mail.
> Suppliers can assume all possible customers have a bank account that can do this in contrast to the crazy world of sending paper checks by mail.
I wish I, and anyone else, could get a bank account directly with the federal reserve bank.
> According to a 2021 report by the Federal Deposit Insurance Corporation (FDIC), an estimated 7.1 million adults in the United States do not have a bank account. This number represents about 2.4% of the adult population.
You could even place limits to "child-proof" such accounts. I'd be ok with not allowing the account balance to get below zero or exceed the FDIC insured limit. My only condition is nobody should be banned from it or kicked out for any reason. You could say this account earns no interest (as long as there are no account maintenance fees or transaction fees).
> Kinda sad to see that Stripe was not on the list of early adopters but I'm sure they will implement it soon.
Given Stripe's role in the system, it doesn't make sense for them to support it until there's sufficient support from the banks as well. Until banks support it, it doesn't matter if Stripe (or any payment platform) does, because the users won't see any benefit.
> Driving the news: "We're tracking it closely," President of Product and Business Will Gaybrick says, noting the company is not actively working on anything related to FedNow. "I really do think real-time payments are going to be a big deal."
> "As I understand FedNow, there isn't yet a mandate, so banks don't have to implement it," he added. "For things to completely change the landscape of payments, you need universal coverage."
> If, for instance, only 30% of banks support FedNow, then it's unlikely to become a priority for merchants to adopt the system.
https://www.axios.com/pro/fintech-deals/2023/06/14/fednow-st...
> The Financial Technology Association, which represents fintechs including Block, Marqeta, Stripe and Wise, among others, is urging the Fed to make direct access to the new faster payments system, called FedNow, more widely available so fintechs can tap the new service without going through banks.
> Generally, only licensed banks have access to the Fed’s master accounts, giving them clearance to use FedNow’s faster payments system when it’s available, but nonbank fintechs argue it’s shortsighted to exclude them from the same direct access to the new public system. While there is also The Clearing House’s rival RTP Network, the new FedNow system may provide more cost-effective services.
https://www.bankingdive.com/news/fintech-federal-reserve-pay...
How could stripe adopt this? Accounts are limited to depository institutions, aka banks. Stripe is a money transmitter, and their customers are businesses.
FedNow can undercut most of their credit card processing business. Not sure why they would even get on board.
Stripe doesn't take the credit card processing fees. The card processing fees go to the card processor, who is not Stripe.
I've been receiving and sending all my bills and invoices by e-mail for the last decade, without any need for some awesome or amazing system. I'm sure millions do the same.
How does one attach money to an email?
You attach for example a PDF file with the invoice, including bank account number etc. The person receiving the invoice logs into his or her online bank and pays it.
Since decent online banks will let you save the details of recipients, in practice it is very smooth and uncomplicated.
You could also receive and send invoices by fax, and there's nothing wrong with that.
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