December 14, 2018 — Financial Innovation Now today called on the Federal Reserve to lead the development of real-time payments infrastructure for the modern era, available for all Americans.
The following statement is attributed to Brian Peters, Executive Director of Financial Innovation Now:
“These technology leaders believe that no American should have to wait hours or days to pay bills or keep the lights on. Payments should move at the speed of life, and for many American consumers and small businesses, that means ‘right now’. FIN member companies applaud the Federal Reserve Board for thinking boldly and working to serve all Americans by providing them with a safe, real-time payment system. America cannot realize this vision without the Federal Reserve and currently we are falling behind other nations. FIN member companies look forward to a payment platform that accelerates American ingenuity and innovation, particularly services that will help the financially underserved.”
In October, the Federal Reserve requested input on how it should develop a system for real-time payment settlement. Currently it can take days for payments to finally make it into a bank account. In contrast, FIN member companies have innovated payment networks that allow consumers to make many payments instantly. Constraints in the current payment infrastructure hamper the ability of payment systems to be more broadly accessible and move in real-time.
FIN urged the Federal Reserve to move forward expeditiously and develop a real-time system with innovation in mind. The FIN companies argue that a Federal Reserve real-time payment infrastructure is necessary because:
- Consumers and small businesses, particularly the underserved, need affordable options, and they have twenty-first century expectations for their money.
- Existing payment systems can be a barrier to innovation and access to capital.
- Other countries are outpacing the United States in adopting real-time payments.
- Ubiquity requires action by the Federal Reserve, which is uniquely positioned to lay the groundwork for safe, convenient and cost effective real time payments.
FIN is an alliance of technology leaders working together on policies that will help modernize the way consumers and businesses manage money and conduct commerce. FIN members include Amazon, Apple, Google, Intuit, PayPal, Square, and Stripe. FIN’s letter to the Federal Reserve can be found at: http://financialinnovationnow.org/wp-content/uploads/2018/12/fin-fed-real-time-payments-docket-op-1625-final.pdf