by: Henry Meier
The financial industry’s push for a faster more efficient payment system in this country is finally gaining some traction. The question is: are the changes coming fast enough to satisfy consumer demand now that Apple has inserted itself into the payments system?
Yesterday the Federal Reserve issued a report on updating the payments system. It concludes that:
“the U.S. payment system is at a critical juncture in its evolution. Technology is rapidly changing many elements that support the payment process. High-speed data networks are becoming ubiquitous, computing devices are becoming more sophisticated and mobile, and information is increasingly processed in real-time. These capabilities are changing the nature of commerce and end-user expectations for payment services. Meanwhile, payment security and the protection of sensitive data, which are foundational to public confidence in any payment system, are challenged by dynamic, persistent and rapidly escalating threats. Finally, an increasing number of U.S. citizens and businesses routinely transfer value across borders and demand better payment options to swiftly and efficiently do so.”
The Fed’s next step is to use the report as a framework for further discussion within the financial industry about what steps can be taken to quickly implement needed changes. If all this sounds a bit too slow it’s because events are quickly outpacing the Fed’s ambitions.continue reading »