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Venmo, PayPal, and Zelle are all consumer-facing products. FedNow is a service for interbank settlement only, not a consumer product. FedNow does create an oppo
by hathawsh 4y ago
Venmo, PayPal, and Zelle are all consumer-facing products. FedNow is a service for interbank settlement only, not a consumer product. FedNow does create an opportunity for banks to provide instant payments for their customers, but that just means banks (even small banks) will be able to compete well with Venmo and others. That seems like a win for everyone to me.
- __derek__ 4y agoAdding onto this, the Fed has proposed opening up Fed Master Accounts to non-bank fintechs (e.g., PayPal/Venmo). That would allow them to improve their own services by moving off of ACH. For those interested in the Fed Master Accounts topic, I recommend this Macro Musings podcast episode with George Selgin.[1] [1]: https://macromusings.libsyn.com/george-selgin-on-inflation-fintechs-and-broadening-access-to-fed-master-accounts https://macromusings.libsyn.com/george-selgin-on-inflation-f...
- gzer0 4y agoI think many are forgetting that Paypal has owned Venmo since 2012 [1]. [1] https://en.wikipedia.org/wiki/Venmo https://en.wikipedia.org/wiki/Venmo