FED Paper on Next Steps for Improving the U.S. Payment System
FED published a paper identifying the updated tactics it will pursue to help improve the speed, safety, and efficiency of the U.S. payment system. The paper summarizes the progress toward achieving each desired outcome, highlighting both observations on market activities as well as progress and outcomes of the FED initiatives.
This paper is a follow up to an earlier paper titled “Strategies for Improving the U.S. Payment System,” which outlined the FED's strategic vision and was published in January 2015. The 2015 paper called for the commitment of all payment industry stakeholders to achieve the five desired outcomes—that is, speed, security, efficiency, international payments, and collaboration. The recent paper presents refreshed strategies and nine new tactics that the FED will employ, in collaboration with payment system stakeholders, to help achieve payment system improvements. In addition to the tactics described in this paper, the FED will continue working to enhance its existing services and to advance ongoing initiatives. The FED's strategies and tactics address the desired outcomes as follows:
Faster payments tactics include efforts to facilitate industry development of a faster payments ecosystem as described by the Faster Payments Task Force (FPTF) in its final report (issued on July 21). The FED is chairing and facilitating an interim collaboration workgroup chartered by the task force to establish a governance framework and will support other collaborative faster payments work efforts.
FED plans also call for pursuing settlement services that address the future needs of a present real-time retail payments environment and for exploring and assessing the need, if any, for FED engagement as a service provider, beyond providing settlement services, in the faster payments ecosystem.
FED's work to reduce fraud risk and advance the safety, security and resiliency of the payment system will expand beyond its Secure Payments Task Force (SPTF) to include a comprehensive analysis of payment security vulnerabilities, potential mitigation approaches, and misalignment of incentives that may hinder progress.
Efforts to enhance the efficiency of both domestic and cross-border payments will continue to focus on collaborating with stakeholders to better understand barriers to improvement and on pursuing adoption of standards and other solutions to address them.
Related Links
Next Steps in Payments Improvement, September 2017 (PDF)
Strategies for Improving Payment System, January 2015 (PDF)
Keywords: Americas, United States of America, PMI, Payment Systems, SPTF, FED
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