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I think FedNow impact on debit will be missed. Cost and speed are only 2 parts of the problem to solve. The debit card instrument is still a materially better i

by kunle 5y ago

I think FedNow impact on debit will be missed. Cost and speed are only 2 parts of the problem to solve. The debit card instrument is still a materially better interface/experience than the account + routing number instrument; people have a debit card on them most of the time, you can swipe it in places etc. Without changing the UX of fednow, hard to imagine it competes. I think fednow probably cannibalizes a bunch of ACH (because its same UX but faster) and a bunch of wires (bc its the same speed but cheaper) but less debit.

toomuchtodo 5y ago
Appreciate the reply! I think this is dependent on uptake of payment methods with QR codes and similar. If FedNow enables a similar UX as in China with WeChat Pay, uptake potential is greater for in person payment. I can already P2P and P2B others with Venmo and Zelle using a QR code, and Walmart Pay uses a QR code for it's UX (examples off the top of my head). TLDR “Are phones or cards the future of mobile payments?” TBD.