Federal Reserve pushes faster payments

The Reserve Banks released a consultation paper in September 2013 solciting comments on gaps and opportunities in the payment system. By the close of the consultation exercise in December, the Fed had received more than 200 responses, with more than half coming from non-banks – reports Finextra.

Responses were submitted by individual financial institutions, businesses, payment networks and processors, software vendors, payment innovators, consultants, and consumers, as well as from trade groups representing financial institution and business members.

Sandra Pianalto, president of the Federal Reserve Bank of Cleveland and chair of the Financial Services Policy Committee, which issued the paper, says: “We are carefully reviewing the feedback that we have received on the consultation paper to identify common themes and issues for future focus, as well as insights into potential solutions.”

In concert with this, the Reserve Banks have extended their information-gathering exercises to further explore the needs related to faster retail payments. They include research on end-user demand for specific payment attributes and an assessment of alternatives for speeding US payments. A third effort involves identifying gaps and opportunities related to payment system security.

Pianalto says updates will be shared with industry stakeholders in the coming months via a number of Fed and industry forums and communications.

“The Reserve Banks remain committed to the continual improvement of the US payment system and will work collaboratively with stakeholders this year and beyond to implement innovations that meet evolving end- user needs for speed, efficiency and security,” she says.