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Fed task forces begin review of faster payments proposals

October 13, 2016

Two task forces convened by the Federal Reserve have begun to review and discuss 19 faster payments proposals submitted by task force members from across the payments industry.

One task force is focused on faster payment capabilities; the other is working to enhance payment system security. Their combined 500 members represent financial institutions, consumer groups, payment service providers, financial technology firms, businesses, government agencies, and others, according to a press release.

The review follows an independent analysis of the proposals by consulting firm McKinsey & Company, which assessed the proposals against criteria developed by task force members.

The task force effort will result in a two-part final report. The first section, slated for release in January, will detail gaps in the current payments landscape, identify opportunities for improvements, and outline benefits to the public of a faster payment system.

The second section of the report, targeted for release in mid-2017, will include a discussion and assessment of specific proposals for an end-to-end faster payment system. Additionally, it will identify strategic issues deemed important to the successful development of faster payments in the U.S., the release said.

"The task force review process is designed to facilitate diverse stakeholder input for the benefit of potential operators of faster payments capabilities, end users of these systems, and the public at large," said Sean Rodriguez, the Fed's faster payments strategy leader and chair of the faster payments task force. "The goal of this process is to create broad adoption of these capabilities by consumers and businesses over the coming years."