WASHINGTON—The Federal Reserve issued strategies intended to make the U.S. payment system more efficient, safer and faster.
The Fed’s “Strategies for Improving the U.S. Payment System” report presents a multi-faceted plan that includes collaborating with payment system stakeholders—including large and small businesses, emerging payments firms, card networks, payment processors, consumers and financial institutions.
“A safer, more efficient and faster payment system contributes to public confidence and economic growth,” said Federal Reserve Board Governor Jerome Powell, who will co-chair the initiative’s oversight committee. “We look forward to working with payment stakeholders to realize this vision.”
The report communicates desired outcomes for the payment system and outlines the strategies and tactics the Federal Reserve will pursue, in collaboration with stakeholders.
The Fed explained that it will establish a task force to identify effective approaches for implementing “safe, ubiquitous, faster payment capabilities.” The paper also calls for a task force to advise the Federal Reserve on reducing payment fraud and advancing the safety, security and resiliency of the payment system.
Additionally, the Fed will pursue efforts to enhance payment system efficiency through work on standards, directories and business-to-business payment improvements, alongside efforts to enhance Fed-provided services for same-day automated clearing house, risk management and settlement, the agency stated.
“This plan reflects the contributions and commitment of thousands of payment system participants who shared their expertise and perspectives during the past 18 months,” stated 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.”
George will serve as executive sponsor for the payment system improvement initiative, a joint effort of the Federal Reserve Banks and Board of Governors.
To begin the next phase of industry engagement on payment system improvement, George and Powell will host a webcast, accessible via www.ustream.tv/federalreserve, at 1 p.m. EST on Jan. 29, outlining views on the Federal Reserve’s vision for the future U.S. payment system and plans for collaborating with stakeholders to achieve shared goals.
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