WASHINGTON (4/29/14)--Possible approaches to improving the payments system, quickening the pace of payments and enhancing network security are among the items covered in the Federal Reserve Banks' latest update on their Payment System Improvement project.
The Fed banks are working to address potential gaps, as well as opportunities, in the payments system, including payment speed, closed payment communities, and international, mobile, and traditional payment channels. The Fed is also exploring where it fits in the payment system going forward.
Last year, the Fed banks released a paper on potential payments system changes, and held a series of town hall-style discussion meetings across the country, to help collect public comment on these issues.
The banks recently released an update on how the project has progressed during the research phase. In that update, they share highlights on their research regarding end-user demand for payment attributes. The banks plan to publish a follow-up paper on their next steps in the second half of this year.
The Credit Union National Association, its Payments Subcommittee and credit unions continue to work with the Fed banks on this project.
CUNA late last year filed a comment letter on the payment system issue, encouraging the Fed banks to create a payments framework that facilitates the ability of credit unions and small financial institutions to access and utilize the latest developments in payments, without undue regulatory restrictions.
The banks must also fully consider the costs and benefits, and ensure credit unions will not be negatively impacted by any changes to the payments system, CUNA said.
For more on the project, use the resource link.