The Federal Reserve published a report this week that gives insight into how it approached its FedPayments Improvement initiative and sheds some light on its progress to date. Finextra highlighted the report on its site:
This month the faster payments task force published the first part (PDF) of a report, describing its history and background, including the process undertaken to identify and assess faster payments pitches.
This is the warm-up to the much anticipated announcement later this year which is promised to provide details regarding the 19 proposals for a faster payment solution that were submitted last year.
The Fed invited firms to submit their proposals for faster payments systems by the end of April 2016. Having weeded out some through an evaluation by McKinsey, 19 are now facing further scrutiny, evaluated against 36 effectiveness criteria.
The second Fed report is expected sometime mid-year. What is unknown is the impact that a positive Fed evaluation will have for suppliers. There are providers in market today that offer payment transactions within seconds that are finding markets and business models for their capabilities without the Federal Reserve’s seal of approval.
Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group
Read the full story here
