August 24, 2016
CNP Expo: The Fed’s Lessons Learned
May 21, 2014
Consumers have learned to love and demand convenience and payment systems have to address the tension between that and security. The Federal Reserve is working cautiously to make payments both faster and safer, according to session moderator.
“The biggest challenge I see is that we are really a global economy and consumers want the friction removed,” said Lisa Hrabosky of PayPal. There are some required delays on cross-border payments the company would like changed. For example, one requirement for a 30-minute delay protects the consumer, but it causes pain for business and slows transactions.
“There are unmet needs that continue to need to be improved upon,” Hrabosky said Wednesday at a panel discussion at CNP Expo in Orlando. The Fed hopes to anticipate problems in that will crop up when changing the procedures.
“Standards are really critical to make sure you don’t have negative outcomes around speeding payment,” said Connie Theien, vice president of industry relations for the Federal Reserve Financial Services. “One of the key drivers was this explosion in the end user system.”
The Fed is considering the explosion of business, increased risks and new uses of payment systems. Businesses can stop wondering where the payments industry is heading.
“It’s evident the future is mobile,” Hrabosky said. “We design around mobile. Anything you can make work on mobile will work on the Internet. It’s the way things are going. Some countries have leapfrogged the computer.”
Fingerprint authentication and biometrics are also part of the future, she added.