What's Ailing Faster Payments Adoption in the U.S.?

Incentives, Tech Barriers and Fraud Fears Hamper FedNow Growth Suparna Goswami (gsuparna) , Rashmi Ramesh (rashmiramesh_) • April 3, 2025

Economic hesitation, legacy concerns and escalating fraud fears have hampered the adoption of a payment rail touted as the next big thing in the U.S. payment landscape, with government backing and technological promise of clear benefits to consumers and the financial sector.

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The U.S. Federal Reserve introduced FedNow two years ago as a national "leading-edge payments system" designed to modernize payments by offering an instant, always-on alternative to traditional systems. Proponents argue that FedNow is not only beneficial, but ranks among the top faster payment alternatives available. But enthusiasm among banks has been lackluster.

"The biggest hurdle has been creating a financial motivation for banks to join faster payments networks. Without coverage, volumes are low ...