The system of Federal Reserve Banks recently updated its Payment System Improvement project discussion by detailing potential solutions to improve the U.S. payment system by accelerating the speed with which payments are processed and enhancing network security.
In September 2013, the Federal Reserve banks released a consultation paper highlighting gaps in the current payment system, as well as desired outcomes and potential solutions. The banks held a series of town hall-style meetings to discuss the changes with the public.
In the recently released update, the banks detailed progress on the project during its research phase, from which they share key points of their research regarding demand for certain types of payment forms. The banks will publish a follow-up on their continued efforts later this year.
The research showed a majority of both business and consumer payers prefer instant or one-hour payment speed when presented with various speed options. Additionally, 61 percent of consumers and 67 percent of businesses said they would not use a certain payment method unless it was widely used by consumers and businesses.