WASHINGTON (1/27/15)--A paper released Monday by the Federal Reserve features the agency's recommendations for improving the payment system in the United States from the perspective of payment system service providers.
"Strategies for Improving the U.S. Payment System" examines ways to create a "safe, efficient and broadly accessible" system, which the Fed says is vital to the American economy.
The Fed previously released a consultation paper on this topic in 2013. The Credit Union National Association filed a comment letter in response to that paper, praising the agency's approach at looking into ways to improve the payment system.
"CUNA appreciates the Fed's willingness to work with CUNA and listen to the concerns of credit unions in developing its paper on the future of the payments system. I have asked my staff to review it in detail and work with our Payments Subcommittee on follow-up," said CUNA President/CEO Jim Nussle. "As the next generation of a payments framework is developed, credit unions need the ability to access the latest technology without undue regulatory restrictions or high implementation costs."
According to the Fed, the payment system in this country is at a "critical juncture in its evolution," with a changing technological landscape that features high-speed data networks, sophisticated mobile devices and increasing real-time information processing. While this is changing the nature of commerce, rapid and evolving threats threaten security of data and the payment system itself.
To achieve these goals, the Fed has identified the following strategies to improve the payments system:
Nussle said CUNA looks forward to continuing to work with its payments system partners, which includes the Fed, NACHA--The Electronic Payments Association, the National Credit Union Administration and others.