Fed looks to faster payments and mobile technologies in policy consultation

Fed looks to faster payments and mobile technologies in policy consultation

The US Federal Reserve is soliciting public input on a set of new policy ideas intended to modernise the nation's retail payments systems and address key themes such as faster payments and mobile technology.

Introducing the 'Payment System Improvement - Public Consultation Paper' Sandra Pianalto, president and CEO of the Federal Reserve Bank of Cleveland says the purpose for the paper is "to share Federal Reserve perspectives on the key gaps and opportunities in the US payment system and identify the desired outcomes that close these gaps and capture these opportunities".

A recent analysis of the US payment system conducted by the Fed picked up on a series of critical issues centred around the need for faster, near real-time payments, closed payment communities, obstacles in international payments, the mobile technology revolution and lack of contemporary features in traditional payment channels.

In addition to seeking broad industry input on the gaps, opportunities and desired outcomes, the Fed is also requesting input on potential strategies and tactics to shape the future of the US payment system.

The input of payment system providers and end users will help the Reserve Banks as they move to define and prioritise initiatives that advance the speed, efficiency and security of payments.

Responses to the paper are being sought by 13 December, to be followed by a new policy draft in the second half of 2014.

"Success in achieving improvements will require collaboration across the industry," says Pianalto. "We have already begun extensive discussions with external parties on these important topics, and we look forward to receiving additional feedback on this consultation paper as we jointly explore the most promising ideas for US payment system improvements."

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