Wilson -- perfect example of a compelled use case! And history may repeat itself. One of the things FedNow may do that TCH RTP can't do is force the Federal government to pay-out via Instant Payments. They may just be waiting for more take-up among smaller banks.
Love the timeline comparison and the proposed framework. I came to a similar conclusion when studying ACH a few years ago — though I didn’t consider age cohort adoption.
In that case the catalyst for receiving bank adoption was the federal government saying, “you’ll sign up for Fed ACH or you won’t receive Air Force payroll or entitlement payments.” The role of top down mandates might be the compelling case for instant as well — particularly in light of the EO pushing to digitize government payroll.
“In search of an initial user for the network, the Fed turned to a large, familiar (and captive) customer: the US Government. In September 1974 after pushing by Fed Governor George W. Mitchell, the US Air Force began paying 45% — 270,000 employees — via ACH. He was “undeterred by the fact that neither the Air Force, Federal Reserve System nor banking industry were prepared.” Governor Mitchell, considered the father of electronic payments, was going drag the U.S. kicking and screaming into the era of electronic payments.”
Wilson -- perfect example of a compelled use case! And history may repeat itself. One of the things FedNow may do that TCH RTP can't do is force the Federal government to pay-out via Instant Payments. They may just be waiting for more take-up among smaller banks.
Love the timeline comparison and the proposed framework. I came to a similar conclusion when studying ACH a few years ago — though I didn’t consider age cohort adoption.
In that case the catalyst for receiving bank adoption was the federal government saying, “you’ll sign up for Fed ACH or you won’t receive Air Force payroll or entitlement payments.” The role of top down mandates might be the compelling case for instant as well — particularly in light of the EO pushing to digitize government payroll.
Wrote about it here:
“In search of an initial user for the network, the Fed turned to a large, familiar (and captive) customer: the US Government. In September 1974 after pushing by Fed Governor George W. Mitchell, the US Air Force began paying 45% — 270,000 employees — via ACH. He was “undeterred by the fact that neither the Air Force, Federal Reserve System nor banking industry were prepared.” Governor Mitchell, considered the father of electronic payments, was going drag the U.S. kicking and screaming into the era of electronic payments.”
https://open.substack.com/pub/wilsonh/p/philosophy-on-payments-part-3?r=ubsu9&selection=c22dbd19-b3ca-4135-b8e4-db29779a7cb3&utm_campaign=post-share-selection&utm_medium=web