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News
Fed outlines its border payments; 6. Lack of payment instrument choice
and visibility after consumers register for digital wallets; 7.
vision for payments Slow and complex payment and accounting systems used
by mostly large businesses; 8. Payment security fears that
inhibit consumer adoption of electronic payments.
Desired outcomes
he U.S. Federal Reserve believes the U.S. payments
infrastructure can be faster and more efficient – The Fed also offered "desired outcomes" to be achieved
with the Fed's help. The central bank of the United by the industry in the next 10 years. First, it expects the
TStates said in a September 2013 report that "gaps" industry to engage in a "collective and collaborative
in the payments system limit payment services for some approach to improve" the system. Next, it seeks changes in
consumers and that opportunities around new technolo- the person-to-person money transfer process, such as the
gies like mobile wallets can fill those gaps. improvement in near-real-time payment capabilities and
confirmation of good funds when transfers are initiated.
In Payment System Improvement – Public Consultation Paper,
the Fed recognized that the success of the payments Furthermore, the Fed wants to see overall "societal"
industry has been largely driven by private industry transaction costs to be reduced, as well as more choices
market forces, with little government direction necessary. for consumers and businesses when conducting cross-
However, new technologies and processes impacting border payments. The Fed also expects its involvement in
payments today could use the guiding hand of government, the industry will result in high public confidence in the
according to the Fed. security of financial services, despite an active cyber fraud
landscape.
The Fed identified eight weaknesses in the payments
infrastructure: 1. Lack of payment mode options for The Fed noted that legacy systems provide a "solid
receivers of physical checks; 2. Lack of near-real-time foundations for payment services," but innovative
payment capabilities; 3. Limited consumer participation payment solutions have exposed their limitations. Until
in innovative payment schemes such as mobile wallets; Dec. 13, 2013, the Fed is welcoming comments on these
4. Lack of consumer-directed features provided by legacy proposals at www.fedpaymentsimprovement.org.
systems; 5. General slowness and inconvenience of cross-
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Fed outlines its border payments; 6. Lack of payment instrument choice
and visibility after consumers register for digital wallets; 7.
vision for payments Slow and complex payment and accounting systems used
by mostly large businesses; 8. Payment security fears that
inhibit consumer adoption of electronic payments.
Desired outcomes
he U.S. Federal Reserve believes the U.S. payments
infrastructure can be faster and more efficient – The Fed also offered "desired outcomes" to be achieved
with the Fed's help. The central bank of the United by the industry in the next 10 years. First, it expects the
TStates said in a September 2013 report that "gaps" industry to engage in a "collective and collaborative
in the payments system limit payment services for some approach to improve" the system. Next, it seeks changes in
consumers and that opportunities around new technolo- the person-to-person money transfer process, such as the
gies like mobile wallets can fill those gaps. improvement in near-real-time payment capabilities and
confirmation of good funds when transfers are initiated.
In Payment System Improvement – Public Consultation Paper,
the Fed recognized that the success of the payments Furthermore, the Fed wants to see overall "societal"
industry has been largely driven by private industry transaction costs to be reduced, as well as more choices
market forces, with little government direction necessary. for consumers and businesses when conducting cross-
However, new technologies and processes impacting border payments. The Fed also expects its involvement in
payments today could use the guiding hand of government, the industry will result in high public confidence in the
according to the Fed. security of financial services, despite an active cyber fraud
landscape.
The Fed identified eight weaknesses in the payments
infrastructure: 1. Lack of payment mode options for The Fed noted that legacy systems provide a "solid
receivers of physical checks; 2. Lack of near-real-time foundations for payment services," but innovative
payment capabilities; 3. Limited consumer participation payment solutions have exposed their limitations. Until
in innovative payment schemes such as mobile wallets; Dec. 13, 2013, the Fed is welcoming comments on these
4. Lack of consumer-directed features provided by legacy proposals at www.fedpaymentsimprovement.org.
systems; 5. General slowness and inconvenience of cross-
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