Connect with us

Tech

FedNow’s legal terms contain a game changer for digital wallets and payment apps

Published

on


A few lines buried in the legal terms for the FedNow service, which is now live, create an important opportunity for digital wallet and payment app providers. While the new FedNow legal regime creates significant business opportunities for all players in this space, emerging nonbank payment providers may have the most to gain from this change.

Early-stage startup founders and investors in particular should take note. These provisions allow nonbank providers access to FedNow under a remarkably open approach, with only a few requirements imposed on their relationships with customers and a back-end bank. The effect is to allow these nonbank providers to increase their reach beyond their own user base (as they are limited today) and potentially also enable payment flows across other apps and wallets and payment networks.

Rather than orient their business around customer acquisition and user base growth, early-stage startups would be able to play to their strengths and center on building innovative software solutions — ones that identify new opportunities and deliver a better and safer customer experience for instant payments.

Payments on the cusp of change

Rarely do we see wholly new digital wallets or payment apps launched by nonbank startups today. Instead, the biggest payment app providers tend to grow bigger: Their app becomes more useful as the number of customers using it grows. That is because the payments these nonbank providers are able to process within their own system are limited to only transfers between their customers.

The potential reach for nonbank payments providers who leverage this provision in the FedNow legal terms could be significant.

As a result, the larger the user base of one particular wallet or app, the more likely it is that a payor can use it to make a payment to a payee, increasing that system’s functionality and value. Because of these network effects, the barriers to entry for new nonbank payment systems are high.

But what if there were some way for a startup to launch a wallet or app that allows its users to also send money directly to a bank account or to a wallet with a totally different nonbank provider — cheaply and within seconds?

This possibility would mean that the usefulness of that payment solution would no longer depend on the size of the nonbank provider’s own customer base. Instead, even nascent payment solutions could reach nonusers who are customers of banks and possibly of other nonbank providers.

A new payments app could launch with readily available reach to a vast network of payors and payees. Both startup payments providers and today’s dominant providers could broaden their reach.

This possibility is real with the FedNow Service and, in particular, its legal terms for nonbank providers.

The FedNow legal terms

The FedNow Service is a new instant payment infrastructure developed by the Federal Reserve. The service went live on July 20, 2023, and enables consumers and businesses to instantly send and receive money through their banks, around the clock and every day of the year, with funds to be available to the recipient immediately.

Importantly, the Federal Reserve designed the FedNow Service to enable fintech companies and other nonbank providers to integrate instant payments into their more innovative and customer-centric services. This goal is evident in how the Federal Reserve’s approach to these nonbank providers differs from that of The Clearing House (TCH), operator of RTP, the private-sector instant payment service.



Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Tech

Intrepid spacecraft beams back vivid photo before moon landing

Published

on

By


An uncrewed private spacecraft has reached the moon’s orbit, one day ahead of its attempt to land at the lunar south pole.

Intuitive Machines’ robotic spacecraft, which launched from Cape Canaveral, Florida, on Feb. 15, beamed back a view of the near side of the moon to flight controllers just six days later. The craft took a speedier path through space to get to the moon than its predecessors over the past year.

On Wednesday, the spacecraft completed its planned main engine burn to get into a circular orbit about 57 miles above the moon. NASA and its contractor intend to broadcast the landing on their respective websites. The event is scheduled for 5:49 p.m. ET Feb. 22.

“Odysseus continues to be in excellent health,” the company said on X, formerly known as Twitter, referring to its name for the lander.

If Intuitive Machines touches down without crashing, it will be the first U.S. spacecraft to complete the quarter-million-mile journey since the last Apollo mission in 1972. Though NASA isn’t controlling this spaceflight and doesn’t own Odysseus, the agency is paying the company $118 million to deliver six instruments to the moon, among other customers’ payloads.

The proposed landing site is Malapert A crater, just under 200 miles from the south pole. Several spacefarers have set their sights on this general region because of its ice. The natural resource, thought to be buried in permanently shadowed craters, is coveted because it could supply drinking water, oxygen, and rocket fuel for future space voyages.

Throughout history, about half of lunar landing attempts have failed, and only one out of three missions that tried to touch down on the moon in 2023 made it without a crash.

Odysseus, the Intuitive Machines’ moon lander, takes a photo of Earth in space.
Credit: Intuitive Machines

Already this year, another NASA contractor, Astrobotic Technologies, tried to get to the moon but never reached lunar orbit due to a detrimental fuel leak discovered early in the flight. In January, Japan became the fifth nation ever to land a spacecraft on the moon, but not without incident: It got there upside down and suffered significant power-generation problems.

NASA selected Intuitive Machines as one of several vendors for its Commercial Lunar Payload Services initiative to explore the moon over the next few years. The program has recruited the private sector to help deliver cargo, conduct experiments, and demonstrate new technology, as well as send back crucial data. Through these contracts, NASA wants to see a regular cadence of moon missions to prepare for astronauts’ return to the moon in 2026 or later.

“What we’ve asked industry to do, which is soft land and operate on the moon’s surface, is not easy at all. It’s extremely difficult, as you probably have seen for lunar landing attempts just in the month of January,” said Joel Kearns, NASA’s deputy associate administrator for exploration, during a call with reporters.

No commercial company has achieved this feat so far, although a few have tried.

SpaceX’s Falcon 9 rocket upper stage deploys Intuitive Machines’ Nova-C lander, aka “Odysseus,” in space.
Credit: SpaceX

Landing on the moon is hard because its exosphere — an extremely thin atmosphere of gasses barely held by the moon’s gravity — provides virtually no drag to slow a spacecraft down as it approaches the ground. Furthermore, there are no GPS systems on the moon to help guide a craft to its landing spot.

Despite numerous failures anticipated from the new, inexperienced players in space exploration, people can expect to be dazzled by their cosmic views, such as the stunning Intuitive Machines images of the past week.

“Pretty cool when a lunar lander takes a picture of its ride to space!” SpaceX said in a post on X last week. “Wishing @Int_Machines and IM-1 a safe and soft landing on the Moon.”





Source link

Continue Reading

Tech

How to watch the moon landing live: See the Intuitive Machines landing attempt

Published

on

By



We might be watching a historic moon landing today.

Intuitive Machines’ IM-1 spacecraft, the uncrewed Odysseus, could potentially land on the surface of the Moon on Feb. 22 at around 4:24 p.m. ET, after an eight-day journey through space. While we can’t be completely sure that the landing will be successful, on Wednesday Intuitive Machines said Odysseus “continues to be in excellent health in lunar orbit.”

You can watch the official stream on Intuitive Machines’ site, on NASA’s website, NASA Television, the NASA app, or on NASA+. You can also keep up by following blog updates on NASA’s website. The live coverage begins at around 3:00 p.m. ET, will continue through the potential landing, and ends with a news conference held by NASA.

The spacecraft is expected to land near Malapert A crater in the south pole region of the moon.

Odysseus launched on Feb. 15 on a SpaceX Falcon 9 rocket from Launch Complex 39A at NASA’s Kennedy Space Center. Its landing would make the first commercial moon landing and is quite the feat. Landing on the moon is an infamously difficult task for a variety of reasons, including the lack of GPS systems and atmospheric drag. Only five countries, including the former Soviet Union, the U.S., China, India, and Japan, have landed on the moon without a significant wreck.





Source link

Continue Reading

Tech

U.S. company makes history with first commercial moon landing

Published

on

By


A small American company’s robotic spacecraft has brought the United States back to the surface of the moon for the first time in more than a half-century.

Intuitive Machines, a Houston-based space company, landed on Thursday, becoming the first commercial company to reach the moon intact. The unprecedented achievement is a win for NASA, which has invested $2.6 billion in contracts with Intuitive Machines and several other vendors to deliver instruments to the moon over the next four years.

It wasn’t all smooth sailing. A few hours before the landing, flight controllers discovered the spacecraft’s laser rangefinders, which help it avoid hazards on the ground, weren’t working. The team decided to take one more lap around the moon, which bought engineers a couple more hours to troubleshoot the problem. During that orbit, they uploaded a software patch to use onboard NASA lasers, which hadn’t previously been tested in space.

Then, there were some communication challenges, but NASA was quick to call the landing a success, even before a photo was beamed back to Earth.

“Today, for the first time in the history of humanity, a commercial company — an American company — launched and led the voyage up there,” said NASA administrator Bill Nelson in a pre-recorded message during the broadcast. “Today is a day that shows the power and promise of NASA’s commercial partnerships.”

The moon lander dubbed Odysseus touched down on Malapert A crater, about 200 miles from the lunar south pole, just before 6:30 p.m. ET. Many nations and private ventures have set their sights on the region because of its ice, thought to be buried in the polar craters. The natural resource is coveted because it could supply drinking water, air, and rocket fuel for future missions, ushering a new era in spaceflight.

The success lends legitimacy to the Commercial Lunar Payload Services initiative (CLPS), a private sector recruitment program to support NASA’s lunar ambitions. Through several contracts, the U.S. space agency wants to establish a regular itinerary of moon missions to prepare for putting Artemis astronauts on the moon in 2026 or later.

Thomas Zurbuchen, NASA’s former head of science, once described each of the first CLPS endeavors as “taking a shot on goal.” The sports analogy means not every attempt will be victorious, but overall the program will give NASA a lot of chances to achieve its moon-to-Mars goals. By outsourcing NASA’s lunar deliveries — rather than fully owning each mission — the agency believes it will save money. The contract with Intuitive Machines for this mission was $118 million.

Odysseus, the Intuitive Machines spacecraft, passes over the near side of the moon on Feb. 21, 2024.
Credit: Intuitive Machines

“We don’t know how many of the early attempts will be successful,” said Joel Kearns, NASA science’s deputy associate administrator for exploration, during a news conference in November. “But I can tell you that these American companies are technically strong and rigorous, savvy, they’re resourceful, and they’re driven to be successful. They want to secure that first mover advantage in generating this new lunar economy.”

But observers have questioned how cost-effective the initiative will truly be, given the riskiness of flying on inexperienced spacelines. In January, Astrobotic Technologies, the first of the CLPS vendors, tried to get to the moon, but never reached lunar orbit due to a detrimental fuel leak. NASA spent $108 million on that mission and lost five payloads in the process.

“If we’re flying missions at one-tenth of the cost of a NASA mission, and we fail two of them, we still get eight missions for that same price,” Kearns said in a pre-recorded statement during the landing broadcast. “Even with one or two or three failures, this is still a very economical proposition.”

Intuitive Machines’ Odysseus moon lander snaps a photo of Bel’kovich K crater, a 30-mile-wide pit with mountains in the center from lunar orbit.
Credit: Intuitive Machines

The likelihood of success, especially for novice space programs, is still slim. Historically, less than half of all missions to land on the moon have arrived without crashing. The lunar exosphere — an extremely thin atmosphere of gasses barely held by the moon’s gravity — provides virtually no drag to slow a spacecraft down as it approaches the ground. Furthermore, there are no GPS systems on the moon to help guide a craft to its landing spot. Engineers have to compensate for these shortcomings from 239,000 miles away.

Over the past five years, the private sector has tried and failed. An Israeli nonprofit and company collaborated in 2019 on the so-called Beresheet moon mission, which crashed on the lunar surface after an orientation component malfunctioned. Last April, Japanese startup ispace ran out of fuel on its descent and ultimately crashed. Astrobotic’s Peregrine lander never made it that far and ultimately broke apart as it crashed back to Earth.

But Intuitive Machines’ landing could instill confidence in the burgeoning lunar economy.

“I know this was a nail biter, but we are on the surface, and we are transmitting,” said Stephen Altemus, Intuitive Machines’ CEO. “Welcome to the moon.”





Source link

Continue Reading

Trending

Copyright © 2023 Dailycrunch. & Managed by Shade Marketing & PR Agency