Laying the Groundwork for a Future of Faster Payments

By Michael Bilski, CEO North American Banking Company

What if an insurance company could instantly send a claims payment to a homeowner whose house was heavily damaged by a hurricane? What if a renter could instantly pay his landlord on the day rent is due? What if a small business could instantly pay its suppliers?

These and other types of faster payments are gaining steam in the United States. In fact, I’m one of the payments industry stakeholders working to accelerate the adoption of ubiquitous faster payments in the United States.

For the past eight months, I’ve been collaborating with other industry stakeholders on the Governance Framework Formation Team (GFFT), a diverse group established last year by the former Faster Payments Task Force. Our goal is to develop a faster payments governance framework, inclusive of all stakeholders, to make decisions to facilitate interoperability and achieve ubiquity of faster payments in 2020, as well as navigate future challenges as technology and end-user needs evolve.

On April 24, the GFFT released its draft governance framework design for an organization to be named the U.S. Faster Payments Council (FPC). This design remains a work in progress, with a number of open issues, including the Board and funding structure. That’s why your feedback is important to ensure the U.S. Faster Payments Council meets industry needs. Please review the FPC’s draft Operating Vision (PDF) and provide your feedback via an online survey. Comments will be accepted now through June 22.

With its focus on facilitating dialogue and collaboration across a wide array of faster payments stakeholders, the FPC will strive to uniquely address gaps and barriers to faster payments adoption and support achievement of faster payments ubiquity in 2020.  The goal is a safe, ubiquitous, world-class faster payments system where consumers, corporations, small business owners and other end-users can pay anyone, anywhere, at any time with immediate funds availability, trust, and confidence, while benefiting from:

  1. Payments and payment information that move seamlessly for end users, regardless of the varied solutions they may be using;
  2. Effective cross-solution risk management that enables trust and public confidence in the safety and security of these new, interoperable faster payments to flourish;
  3. Payers and payees receiving confirmation of a payment within seconds, even when the payment moves across solutions; and
  4. All parties having equitable access to efficiently resolve disputes and errors.

Please visit FedPaymentsImprovement.org to review the proposed design for the U.S. Faster Payments Council. Your feedback on the FPC’s draft Operating Vision, including the proposed Board, funding approach and dues, will help inform the resolution of open issues, foster inclusivity, provide equitable Board representation and meet anticipated funding needs.

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