The FedNow system is designed to provide instant payments so that U.S. financial institutions can offer real-time payment services. Since the Dropp platform has been selected as one of the service providers for FedNow, micropayments in HBAR, USDC and US dollars will be available in this system.
“The concept of micropayments has been around since the late 90s, but the last couple of years have seen significant growth in the digital economy. This is being driven by technological innovation and increasing consumer demands,” said Dropp CEO and chairman Sushil Prabhu.
He added that Hedera Hashgraph has a throughput of over 10,000 transactions per second and settlement time is just 3-5 seconds. Therefore, the Dropp platform will greatly simplify and speed up transactions for financial institutions.
In this way, Dropp can become a “bridge” between traditional banking and distributed ledger technology, Prabhu concluded. On the back of this news, the HBAR coin rose more than 16% in a matter of hours, from $0.055 to $0.0663.
As a reminder, in 2020, Australian electronic payment system Eftpos also expressed interest in blockchain for Australian dollar-based micropayments. To that end, Eftpos has begun testing the Hedera Hashgraph blockchain.