Fed consults on FedNow cross-border payments

Fed consults on FedNow cross-border payments

Fed consults on FedNow cross-border payments

The US Federal Reserve has launched a public consultation on a proposal to enable participants in its FedNow real-time payments system to make cross-border transfers. The consultation, which is set to run until May 15, 2024, aims to gather feedback from stakeholders on the potential benefits and challenges of extending FedNow's capabilities to international payments.

Background & Context

FedNow, which was launched in 2023, is a real-time payments system that allows financial institutions to make and receive payments on behalf of their customers. The system has been designed to provide fast, secure, and reliable payment services, with the goal of reducing the time and cost associated with traditional payment systems. The extension of FedNow to cross-border payments could have significant implications for the global payments landscape, particularly for Swiss banks and financial institutions that have been investing heavily in real-time payments infrastructure.

Impact on Swiss SMEs & Finance

For Swiss SMEs and financial institutions, the potential expansion of FedNow to cross-border payments could be a game-changer. By enabling real-time cross-border payments, Swiss businesses could experience reduced transaction costs, improved payment efficiency, and increased access to international markets. This could be particularly beneficial for Swiss exporters, who could benefit from faster and more reliable payment processing. Additionally, Swiss banks and financial institutions could see an increase in cross-border payment volumes, which could lead to new revenue streams and growth opportunities.

What to Watch

As the consultation period comes to a close, the US Federal Reserve will review the feedback received and assess the feasibility of extending FedNow to cross-border payments. If the proposal is approved, it is likely that the Fed will work closely with international partners, including the Society for Worldwide Interbank Financial Telecommunication (SWIFT) and the European Central Bank, to develop a global real-time payments infrastructure. Swiss banks and financial institutions should closely monitor the developments and be prepared to adapt to any changes in the global payments landscape.

Source

Original Article: Fed consults on FedNow cross-border payments

Published: April 13, 2026

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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Consult a licensed financial advisor before making investment decisions.