New York (CNN Business) The Federal Reserve wants to make paying bills and transferring money easier and faster.

The Fed announced Monday that it will develop a real-time payment service called "FedNow" to help move money around the economy more quickly. It's the kind of government service that companies and consumers have been requesting for years — one that already exists in other countries. The service could also compete with solutions already developed in the private sector by big banks and tech companies.

The Fed itself is not setting up a consumer bank, but it has always played a behind-the-scenes role facilitating the movement of money between banks and helping to verify transactions. This new system would help cut down on the amount of time between when money is deposited into an account and when it is available for use. FedNow would operate all hours and days of the week, with an aim to launch in 2023 or 2024.

Under the current system, the process of sending and receiving money can take up to 72 hours, leaving businesses and consumers, and especially low-income people, in limbo. For example, the current system can create problems for people paid by check at the end of a month, because they must deposit the check into their bank accounts and wait for it to be cleared before they can use that money to pay a utility bill at the start of the next month.

Bank of America BAC JPMorgan Chase JPM US Bank USB Many of America's largest banks are already part of a coalition called The Clearing House, which offers real-time payment-processing services. Members includeand, among others. And individuals can now instantly transfer funds to one another through apps like Venmo and PayPal, although those services often charge customers to make those funds immediately accessible in their bank accounts. Existing real-time payment systems also typically notify payers immediately that their money has been received.

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