Faster Payments Tracker - June 2016

Faster Payments Tracker - June 2016

  • 000

Driven by consumer expectations and enhanced technological standards, the U.S. is accelerating full-speed ahead toward comprehensive Faster Payments. As the nation undergoes this digital and economic transition, government agencies, businesses and nancial institutions of all sizes are zeroing in on how to support, integrate and develop an ecosystem that securely enables rapid transactions.

For this month’s Tracker cover story, caught up with Kathleen Oldenborg, Director for Payment Systems Policy for the Of ce of the Comptroller of the Currency, to dive into the country’s multi-sector push to make the Faster Payments dream a reality. For an in-depth look at the future of real-time transactions in the U.S., and a look at how the OCC is impacting this shift, check out this Tracker’s Cover Story.

Also included in this month’s Tracker are news highlights from across the Faster Payments ecosystem. Here’s a look at some recent headlines that showcase the magnitude of the cross-industry movement toward high- speed transactions:

Faster Payments: A National Movement

While players in numerous elds are contributing to the advancement of Faster Payments, the efforts are being led by the Federal Reserve. The Fed’s Faster Payments Task Force has been vetting proposals from tech rms looking to establish their solutions as the framework of the country’s rapid transactions. This month,
the banking institution received a submission from FinTech startup Dwolla, whose solution, FiSync, will join existing proposals in the Fed’s extensive review process.

Although Faster Payments have yet to gain widespread use, digital nancial solutions that expedite the payment process are winning over U.S. consumers.

A new survey from NACHA revealed that consumer awareness and adoption of Direct Deposit via ACH has expanded signi cantly over the past ve years. Currently, 82 percent of U.S. employees are compensated
by Direct Deposit via ACH, compared to 74 percent in 2011. Additionally, nearly 80 percent of workers who
aren’t paid through this solution are aware of its existence. The study reported that Direct Deposit users are predominantly fans of the technology, as 87 percent of respondents indicated they were highly satis ed with it – a main reason being that it provides them with faster access to their pay.

This overwhelming consumer demand, a key driver in the journey toward Faster Payments, is largely
based on a national desire for secure, ef cient and streamlined scal solutions. This widespread sentiment has extended beyond the walls of nancial institutions and into the processes of companies and federal agencies – even among those that are not known for their commitment to technological innovations,
like the U.S. Postal Service.

According to a new report from the Of ce of the Inspector General, the USPS is looking to join the Faster Payments movement by potentially adopting blockchain technology. The report explained that the Postal Service could bene t from using blockchain to create a bitcoin-style currency (“Postcoin”) that would allow the organization to serve unbanked consumers as a “global payment service.”

Check out the Tracker’s News section to read more about what is trending around the world of Faster Payments.

We Also Recommend