Proposal Submissions are In: Faster Payments Task Force Update
The Federal Reserve Faster Payments Task Force was created to identify and evaluate options for implementing safe, ubiquitous, and faster payments capabilities in the United States. The primary goal is to enable one or more solutions to support a variety of commercial and consumer payments use cases. The Task Force is made up of 326 members from across the payments industry and is headed by a steering committee of 17 members including representatives from NACHA, Ripple, Dwolla, CFPB, banks, retailers, and others.
The Task Force is nearing the end of a multi-phase approach that began in 2015. The process has included developing solution evaluation criteria, facilitating industry showcases, and reviewing initial proposal submissions from industry participants (see Figure 1). The Task Force is currently evaluating 19 proposals as part of its Phase 2 assessment.
The proposals and related assessments will be released in July. Below is an overview of proposals submitted by Dwolla, Ripple, and The Clearing House, which self-identified as having submitted proposals for consideration. As these examples illustrate, the submissions differ in their value propositions. Each leverages different infrastructure and technology, and will likely have its own relative merits and potential disadvantages.
The Task Force will be releasing its final report in Q3, which will include the proposal assessments as well as a summary of issues requiring collaboration (e.g., interoperability across solutions). The presumed next step would be to socialize report findings with industry stakeholders and chart a path forward for improving the speed, security, and efficiency of the impending rollout of faster payments.
For more information, please contact Ginna Rodriguez, Senior Consultant, firstname.lastname@example.org; or Caleb Marley, Analyst, email@example.com. Both specialize in Payments Strategy & Innovation.
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