KANSAS CITY, Mo. (6/26/15)--Federal Reserve Board Governor Jerome H. Powell shared his views Thursday on how to build a safer payment system in the United States.
"The payment system touches our daily lives, whether it's a consumer paying a bill, a company deciding to upgrade its point-of-sale terminals, a technology startup developing a new peer-to-peer payment app, or the government issuing tax refunds. Americans make more than 120 billion noncash payments each year.
"But it's only when something goes wrong, like a data breach at a major retailer or bank, that the typical end user takes notice of the payments process," Powell said, addressing the Federal Reserve Bank of Kansas City Conference, "The Puzzle of Payments Security: Fitting the Pieces Together to Protect the Retail Payments System."
Powell noted that as the nation's central bank, the Fed plays many roles in the payment system, including payment system operator, supervisor of financial institutions and systemically important financial market utilities, regulator, researcher, and catalyst for improvement.
He discussed the agency's current efforts to improve the speed, efficiency and security of the payment system, and outlined four things all players within the payments system should be doing to enhance payment security. Those things, Powell said, involve:
Click here to read Powell's full remarks on the payments system.