Federal Reserve Alum: U.S. Payments Falling Short of Digital Needs

By  |  April 4, 2012
 | 

The Federal Reserve and Congress need to move quickly if the United State’s payments infrastructure is to keep up with the growing digital economy, according to a report by Finextra.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    Last week, Federal Reserve alum Bruce Summers delivered a paper to the Kansas City Fed, which criticizes the absence of public interest governance in the payments industry. Summers touts the U.K.’s Faster Payments plan as an ideal model for the U.S. to follow.

    “The idea that money in transit is digital information which can be processed immediately has not been readily accepted by the banking industry,” says Summers. “Most bank-sponsored payment schemes depend on clearing and settlement systems that are designed around batch processing and delayed settlement, and these clearing and settlement arrangements are being nurtured as opposed to being re-designed around continuous, real-time processing.”

    Click here to read the complete article.


    See More In: