Since 2015, the Federal Reserve has been studying ways to increase the efficiency of the payments system in the U.S. On Monday, the Faster Payments Task Force released its final report containing 10 recommendations it said will enable businesses to receive payments faster by the year 2020.
The task force was established to identify a path toward a system that can facilitate getting businesses paid faster system wide while maintaining safety and interoperability. To do so, the final report details recommendations that encompass establishing a governance framework, establishing rules and standards, suggesting changes to the current regulatory regime, assessing the role of the Fed, implementing enhanced fraud detection and information sharing and others.
“The task force has accomplished groundbreaking work to define what stakeholders expect from a future payment system and how industry collaboration can help to deliver it,” said Esther George, president and CEO of the Federal Reserve Bank of Kansas City, who is leading the Federal Reserve’s payments improvement initiatives. “The level of collaboration within this large and diverse group of stakeholders was encouraging and productive.”