The Federal Reserve Board’s FedPayments Improvement initiative is currently reviewing proposals from various processors for the development of a faster payments platform for the U.S. The traditional processors that are used to developing, launching and maintaining scalable solutions to move money are all expected to present their proposals. Smaller organizations are also getting into the game, including P2P provider Dwolla.
“The success of the Fed’s initiative represents an unprecedented awareness of the potential returns offered by a more secure, modern, and instantaneous payment system,” said Dwolla CEO and founder Ben Milne. “The submission reveals how FiSync works today and could work tomorrow. It’s a powerful way to strengthen market fit, collaborate with other platforms, and accelerate adoption in the emerging faster payment market.”
This is a way for fintech organizations like Dwolla to provide their views and influence others collaboratively with potentially new perspectives on near instant money transfers.
The purpose of the review process going on now will determine which of the proposals presented meet the objectives of the initiative and the 36 efficiency requirements the Fed has outlined:
The Federal Reserve’s Strategies for Improving the U.S. Payment System established the Faster Payments Task Force in support of its strategy to identify effective approach(es) for implementing a safe, ubiquitous, faster payments capability in the United States. The Faster Payments Task Force objectives are to:
• Represent views on future needs for a safe, ubiquitous faster payments solution
• Assess alternative approach(es) for faster payment capabilities
• Address other issues deemed important to the successful development of effective approaches
Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group
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