The Federal Reserve, the central bank of the United States, recently added crypto company Dropp to its list of service providers. With this partnership, Dropp has opened its doors to financial companies connected to the Federal Reserve’s payments platform: FedNow. This payment service is only accessible to financial institutions and offers Real-time payments, i.e. immediate payments from bank to bank. It aims to replace traditional bank transfers, which can sometimes take days.
Hedera Project Dropp the alternative for credit card payments
Micropayment platform Dropp is one of them Pay by bank Alternative to credit card payment. By eliminating the high cost of credit card transactions, the platform enables retailers and merchants to offer low-value products and services online.
The micropayment platform is based on the Hedera Hashgraph network and uses distributed ledger technology (DLT) with high throughput and low latency in data transmission. This ensures super-fast payments and cheap transaction costs, which is in line with the current digitization of our society.
Through the Dropp prepaid payment service, consumers can top up their digital wallets with fiat money and then enjoy the convenience of completing their purchases in a single action. These online payments can be made without registering or registering with the merchants, so the consumer’s data remains protected.
Transactions via Dropp are possible in United States Dollars (USD), USD Coin (USDC) and HBAR, the cryptocurrency of the Hedera network.
FedNow payment platform
FedNow, an instant payment service operated by the US Federal Reserve (Fed), launched in July. This 24/7 payment service is not designed for consumers, but is compared to the payment infrastructure of banks. The platform is therefore only available to organizations that choose to adopt the new financial system.
With only a few dozen financial institutions using the service, FedNow hopes to welcome more regulated banks in the future.
Hedera crypto HBAR is rising sharply
With the announcement of the partnership, the indigenous The Hedera token is up more than 17% in just a few days. The total market value of the project thus peaked at $2.46 billion and then traded at a price of $0.073.
Despite last week’s huge surge, HBAR is also experiencing a red Wednesday. That drop in price has resulted in a 9% drop today to a value of $0.067 at the time of writing. Still, the native Hedera token is in good shape this month with a whopping 30% surge.
🚀 Use Dropp’s distributed ledger technology and regulated banking for revolutionary instant digital payments! We’re excited to have Dropp featured on FedNow as a service provider @frbservicesExciting times are ahead of us! #fednow #instant payments…
– Drop (@droppcc) August 14, 2023