Faster Payments

Framework Bows For US Faster Payments Council

The Governance Framework Formation Team (GFFT) said Tuesday that it has completed a draft framework to create a new U.S. Faster Payments Council (FPC), eight months in the making.

The framework – according to the team, which is comprised of 27 members across the payments spectrum – is now open for comment and review for the next 60 days.

The group said the framework is only one of the more recent steps in the movement to embrace a faster payments system in the country. Among the spearheads of that movement: The Federal Reserve, which three years ago formed a task force geared toward faster payments. As part of the Fed initiative, the task force said last July it would move toward the aforementioned framework as one of its core goals.

Among the key focal points of the council are interoperability and ubiquity of faster payments, along with transparency.

In a release Tuesday, the GFFT said that an online survey is now extant to let stakeholders share their thoughts and indicate whether there is broad agreement on the new faster payments council “and whether any refinements are needed.”

The outlined goals for the council include a ubiquitous payment system by 2020, in which transactions can be completed anywhere, at any time with immediate availability of funds.

In a statement accompanying the announcement of the council’s formation, Sean Rodriguez, executive vice president and GFFT chair, said that the GFFT “has worked hard to produce a draft governance framework that’s focused on broad participation and pragmatic, private-sector approaches to solving problems and removing barriers to ubiquity and adoption.”

Language contained in the draft document notes that for ubiquity, interoperability will be a focus, and the FPC will “complement existing industry efforts by bringing additional networks, solutions providers and end users together for the purpose of addressing gaps.” Minimum standards for end user expectations and message formats will be under consideration.

Broad adoption will also focus on enabling users to receive payments, making origination more attractive to payers.

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