Why Is Your Money Still Stuck in Limbo?
For years, one of the biggest complaints about traditional banking has been slow payments and transfers.
Maybe you just sold a car, got paid by a client, or needed to move money between accounts. You initiate an ACH transfer, expecting it to go through quickly—because, well, it’s 2025, and everything else moves instantly.
But instead, your money gets stuck in banking limbo for days. If it’s a Friday? Forget about it. If there’s a holiday, that’s a double whammy. Need it sooner? You’ll have to pay a fee for a wire transfer or an “instant” withdrawal via Venmo or PayPal.
This isn’t just a minor inconvenience. It creates cash flow headaches for businesses, overdraft risks for consumers, and frustration for anyone expecting money to move as fast as life does.
People would love a solution to this issue. And guess what? It already exists.
It’s called FedNow—a real-time payment system developed by the Federal Reserve that enables instant, 24/7 bank-to-bank transfers. It’s been around since July 2023, and over 1,000 banks have opted in.
So, if the solution exists, why isn’t it being talked about? And if over 1,000 banks have signed up, why isn’t it available to everyone yet?
Let’s shed light on just that.
What Is FedNow?
FedNow is a real-time payment system that allows banks and credit unions to send and receive payments instantly, 24/7, 365 days a year.
This isn’t a consumer-facing app like Zelle, Venmo, or PayPal. It’s also not a cryptocurrency or central bank digital currency (CBDC).
It’s simply an infrastructure upgrade that enables immediate bank-to-bank transfers—no waiting, no delays.
How Is FedNow Different From ACH and Wire Transfers?
For decades, U.S. bank transfers have relied on two main systems:
ACH (Automated Clearing House) – Used for payroll, bill payments, and bank transfers, but slow (one to three days to settle).
Wire Transfers – Faster than ACH but only during banking hours and often come with hefty fees.
FedNow bypasses these delays by enabling instant, 24/7 domestic payments up to $500,000 per transaction (though banks may set lower limits).
Why FedNow Matters
The ability to instantly transfer money between banks solves real-world problems:
Businesses – No more waiting for funds to clear, which improves cash flow and reduces reliance on short-term financing.
Consumers – No more delays when transferring money between different banks, whether moving funds from a brokerage account or paying a bill.
Financial Institutions – A faster, more efficient way to process transactions with lower operational costs.
It also removes the need for "instant transfer" fees that apps like Venmo and PayPal charge when moving money from their platforms to your bank.
But Wait—Don’t We Already Have Instant Transfers?
Not exactly.
Apps like Zelle, Venmo, and Cash App feel instant when sending money to friends, but behind the scenes, they still rely on ACH or private bank partnerships to settle transactions. That’s why:
"Instant" withdrawals still come with fees—unless you wait one to three days, just like ACH.
Transfers don’t fully settle right away—the bank-to-bank movement of money still takes time.
These apps are built for personal transfers, not business transactions or bill payments.
FedNow doesn’t replace these services. Apps like Venmo and Zelle are still great for quick personal exchanges and aren't going anywhere, but FedNow eliminates the need to pay fees for instant bank transfers and makes larger, non-personal transactions seamless.
So… Why Isn’t FedNow Everywhere Yet?
This is where things get interesting.
1. It’s Already Adopted—But Not Fully Accessible
As of early 2025, over 1,000 banks have signed up for FedNow.
However, just because your bank has access doesn’t mean you can use it yet. Banks must enable it on their front-end systems, and many haven’t rolled it out to consumers.
2. Banks Might Be Slow-Rolling Adoption
Some banks may have financial incentives to delay FedNow’s full rollout. Why? Because they make money on:
Wire transfer fees
Overdraft fees
Instant transfer charges from third-party apps
A fully functional real-time payment system reduces those revenue streams, which means some banks may be dragging their feet.
3. Most People Don’t Know It Exists
The demand for faster payments is obvious; people constantly complain about slow bank transfers.
But the Federal Reserve isn’t running ad campaigns to promote FedNow—they’re not exactly known for their PR prowess. There’s no flashy marketing or big media push. The Fed’s role is more behind-the-scenes, as FedNow is an infrastructure upgrade, not a consumer-facing product you’d notice while using it.
And because most people don’t think about how their money moves—just that it does—there hasn’t been widespread consumer pressure on banks to enable it. The infrastructure exists, but without awareness, most people aren’t asking for it. That makes it easier for banks to take their time rolling it out.
What Will Make Banks Move Faster?
Consumer Demand – If enough people start asking their banks why they don’t support FedNow, banks will feel pressure to adopt it.
Competitive Pressure – If bigger banks roll it out, smaller banks may be forced to follow.
Government Incentives – If the Fed offers lower costs or incentives for adoption, that could push more banks to activate it.
FedNow Solves the Instant Transfer Problem—So Where Does That Leave Crypto?
For years, one of the main selling points of crypto as a payment system was that it operates 24/7, instantly, without banks.
That was a fair criticism of traditional finance before FedNow.
But now? FedNow does exactly that for domestic payments.
Of course, people will still use crypto for investment speculation, ideological reasons, or niche use cases. International transfers still use SWIFT (which might be an article for another day), but for moving money between banks in the U.S., the solution is already here.
Update: Several international readers have pointed out that real-time bank transfers have been standard in many developed countries outside the U.S. for years. That context helps explain why the “instant payments” use case for crypto has gained more traction in the U.S., where outdated banking infrastructure has made such speed feel more revolutionary than it really is.
The More You Know
FedNow is a massive upgrade to the U.S. financial system that solves one of the biggest complaints about traditional banking.
Yet, because of slow bank adoption, lack of awareness, and financial incentives, it remains largely under the radar.
The next time someone argues that banks are slow and outdated, ask them:
"Did you know there’s already an instant, 24/7, real-time payment system available?"
The real question is:
"When will your bank let you use it, and why aren’t more people talking about it?"
About the Author
Carson McLean, CFP®, is the founder of Altruist Wealth Management, a flat-fee financial planning firm serving clients nationwide. With over 15 years in the industry, he believes good financial advice starts with education—helping people cut through industry noise to make smarter, data-driven decisions.
For more insights, visit our Altruist Wealth Management Blog