Industry leaders recently formed a new organization, the U.S. Faster Payments Council (FPC), to foster the development of a better payment system in the country.
The FPC will be focused on private-sector approaches to addressing issues that inhibit the adoption of faster payments. Specifically, the council will adopt practices that enhance safety and security for service providers and users of faster payments and develop guidelines to address opportunities and issues. It will also develop an education and awareness program to foster a better understanding of faster payments
“The industry has clearly signaled that, while our nation’s faster payments system capabilities are rapidly innovating, there’s much to be done to promote ubiquity and faster payments adoption,” Douglas Berg, senior vice president of payment industry relations for Wells Fargo Bank, said. “We encourage our nation’s payments leaders to lend their voices to the future of faster payments by joining the FPC and sharing their insights and expertise to further this important work.”
The council was formed by the Federal Reserve’s Governance Framework Formation Team (GFFT) – a workgroup established by the Faster Payments Task Force in 2017.
“The Federal Reserve applauds this next step in the evolution of the U.S. payment system,” Sean Rodriguez, Federal Reserve executive vice president and Faster Payments Strategy leader, said. “We commend the GFFT’s efforts to come together and embrace the need for a new organization that will help facilitate efforts to modernize our country’s payments system and allow everyone – providers, consumers, businesses, and more – to benefit from faster payments.”
The council is in the process of hiring an executive director and is seeking out new members. Several organizations have already committed to being a part of the FPC, including American Bankers Association, Accredited Standards Committee, Commerce Bank, JPMorgan Chase Bank, Mastercard, North American Banking Company, Open Payment Network, The Clearing House, SHAZAM, VISA Inc., Walmart, and Wells Fargo Bank, among others.
“Walmart is pleased to collaborate with other payments stakeholders as the United States transitions toward faster payments,” Reed Luhtanen, senior director of global treasury at Walmart, said. “We fully support the FPC’s objectives, and through open dialogue, we look forward to helping inform and drive practices that will benefit our customers and stores through faster, more efficient and secure payments.”
Andrea Gilman, senior vice president, product management at Mastercard, said this initiative would shape the future of payments in the United States.
“I encourage all of our customers and partners to participate in this important dialogue,” Gillman said.