On September 10th 2013, the Federal Reserve Banks started a consultation exercise in pursuit of a better payment system for the USA.
In the consultation paper launching the process, the Federal Reserve Banks listed five desired outcomes:
- Key improvements for the future state of the payment system have been collectively identified and embraced by payment participants, and material progress has been made in implementing them.
- A ubiquitous electronic solution(s) for making retail payments exists that does not require the sender to know the bank account number of the recipient. Confirmation of good funds notification that the payment has been made. Funds will be debited from the payer and made available in near real time to the payee.
- Over the long run, greater electronification and process improvements have reduced the average end-to-end (societal) costs of payment transactions and resulted in innovative payment services that deliver improved value to consumers, businesses, and governments.
- Consumers and businesses have better choice in making convenient, cost- effective, and timely cross-border payments from and to the United States.
- The Federal Reserve Banks have collaborated, as appropriate, with the industry to promote the security of the payment system from end-to-end amid a rapidly evolving technology and threat environment. In addition, public confidence in the security of Federal Reserve financial services has remained high.
In our response (https://fedpaymentsimprovement.org/wp-content/uploads/2013/12/Alun_Thomas-Kalypton_Limited-121313.pdf ), Kalypton noted that the technical requirements implied by these desired outcomes could be delivered in much less than the anticipated 10 year timescale but that there might be limited incentive for some industry incumbents to do so.