Federal Reserve releases faster payment report

The Federal Reserve has issued its highly anticipated faster payments report, “Strategies for Improving the U.S. Payment System,” which lays out “a multi-faceted plan for collaborating with payment system stakeholders … to enhance the speed, safety and efficiency,” of payments, according to a press release.

“A safer, more efficient and faster payment system contributes to public confidence and economic growth,” said a statement by Federal Reserve Board Governor Jerome H. Powell. “We look forward to working with payment stakeholders to realize this vision.”

The product of an 18-month research program by the Federal Reserve, the report describes desired outcomes for the payment system, as well as the strategies and tactics the Fed will pursue to achieve them — starting with the formation of task forces to identify effective approaches to payment modernization and to advise the Federal Reserve on increasing the security of the payment system.

“This plan reflects the contributions and commitment of thousands of payment system participants who shared their expertise and perspectives during the past 18 months,” said Esther George, president of the Federal Reserve Bank of Kansas City and a member of the Federal Reserve’s Financial Services Policy Committee. “Consequently, we believe the strategies and tactics in the plan have broad support and strong prospects for success.”

To begin the next phase of industry engagement on payment system improvement, George and Powell hosted a webcast on Jan.29, where they shared views on the Federal Reserve’s vision for the future U.S. payment system and plans for collaborating with stakeholders to achieve shared goals.

A subsequent series of FedForum teleseminars on Feb. 4 and Feb. 10 will present an overview of the strategies and a question-and-answer session. Registration for the FedForum events is available online. Interested stakeholders may also register with the FedPayments Improvement Community to receive future communications and event invitations.

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