- Big tech companies and some other fintech firms support the Federal Reserve taking a central role in developing a real-time payment system in the U.S., pitting them against the nation's big banks, who oppose the idea, American Banker reports.
- Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), and Google (NASDAQ:GOOG) are joined by PayPal (NASDAQ:PYPL), Square (NYSE:SQ), Stripe (STRIP), and Intuit (NASDAQ:INTU) in backing a payment system where the U.S. central bank takes a key role in building the system.
- "Only the Federal Reserve can serve as the catalyst to achieve real-time payments ubiquity in a timely manner," the tech companies said in a letter submitted by a trade group.
- Big banks, though, already run their own real-time payment system through The Clearing House, a company they co-own. That system, though, hasn't yet been adopted by smaller financial institutions.
- The big banks say that starting another payment system could slow progress and interoperability between the two rapid payment systems would be a concern.
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