Your paycheck could clear faster now that the FedNow instant payment service for banks has launched

By ADRIANA MORGA
Associated Press

NEW YORK (AP) — The Federal Reserve has launched a new instant payment service that allows banks and credit unions to sign up to send real-time payments so they can offer customers a quicker way to send money between banks. FedNow offers instant payment services for banks and credit unions to transfer money for their customers. Unlike other private money-transferring services like PayPal or Venmo, FedNow services are not offered to customers directly through a third-party app or a website. The service will only be available through banks or credit unions, though those institutions will likely make it available on their websites and apps.