Comment by ArlenBales
3 years ago
Question: Can this be used by a consumer to more conveniently and securely, and without 3rd party fees, sell things online or in-person?
Example 1: Sell a graphics to someone on /r/hardwareswap. Currently using PayPal.
Example 2: Sell car in-person. Currently go to bank and have buyer hand over cash to deposit in bank.
I hope so, when it trickles down to the commercial bank user level.
That's how it works in pretty much the entire rest of the world. PayPal is mostly incomprehensible to Europeans, it solves a problem that they never had.
This isn't strictly true, at least in NL. Most domestic online businesses use iDeal for instant payments, but if you aren't shopping at an online retailer that explicitly supports it, you need to use a real credit card or Paypal as a pass-thru. Some businesses will support you sending a payment via IBAN, but then you're waiting days potentially for someone to reconcile the ledger manually and deliver your digital product.
Since I don't particularly enjoy having debt, Paypal is a nice middle ground as long as the fees aren't outrageous.
Not yet for consumer banking. Expect this to get rolled out first for transfers between banks and financial institutions, then regular businesses.
The end users of FedNow are financial institutions, so not directly.
The hope is that banks open it up for their consumers to use. Log into your bank app -> send money to friend's bank and it will all happen over FedNow under the hood.