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Faster payments in the United States: how can private sector systems achieve public policy goals?

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  • Fumiko Hayashi

Abstract

Consumers and businesses are increasingly expecting faster payments. While many countries have already developed or are in process of developing faster payments, the availability of these payments is fragmented in the United States. The recently released paper by the Federal Reserve encourages private sector participants to provide faster payment services. However, private-sector faster payments systems will face significant challenges in achieving public policy goals of ubiquity, safety, and efficiency unless system governance represents broad public interests. One way to better align private-sector interests with those of the public is for the Federal Reserve to influence governance of the private-sector systems through its leadership role.

Suggested Citation

  • Fumiko Hayashi, 2015. "Faster payments in the United States: how can private sector systems achieve public policy goals?," Research Working Paper RWP 15-3, Federal Reserve Bank of Kansas City.
  • Handle: RePEc:fip:fedkrw:rwp15-03
    DOI: 10.18651/RWP2015-03
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    References listed on IDEAS

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    1. Fumiko Hayashi, 2013. "The new debit card regulations: effects on merchants, consumers, and payments system efficiency," Economic Review, Federal Reserve Bank of Kansas City, vol. 98(Q I), pages 89-118.
    2. Jean-Charles Rochet & Jean Tirole, 2002. "Cooperation Among Competitors: Some Economics Of Payment Card Associations," RAND Journal of Economics, The RAND Corporation, vol. 33(4), pages 549-570, Winter.
    3. Scott Schuh & Joanna Stavins, 2016. "How Do Speed And Security Influence Consumers' Payment Behavior?," Contemporary Economic Policy, Western Economic Association International, vol. 34(4), pages 595-613, October.
    4. Katy Jacob & Kirstin E. Wells, 2011. "Evaluating the potential of immediate funds transfer for general-purpose payments in the United States," Chicago Fed Letter, Federal Reserve Bank of Chicago, issue Nov.
    5. Terri Bradford & William R. Keeton, 2012. "New person-to-person payment methods: have checks met their match?," Economic Review, Federal Reserve Bank of Kansas City, vol. 97(Q III).
    6. Fumiko Hayashi & Jesse Leigh Maniff, 2014. "Interchange fees and network rules: a shift from antitrust litigation to regulatory measures in various countries," Payments System Research Briefing, Federal Reserve Bank of Kansas City, issue Oct, pages 1-5.
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    Cited by:

    1. Fumiko Hayashi, 2016. "Access to Electronic Payments Systems by Unbanked Consumers," Economic Review, Federal Reserve Bank of Kansas City, issue Q III, pages 51-76.

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    More about this item

    Keywords

    Faster payments; Federal Reserve and payments; System governance;
    All these keywords.

    JEL classification:

    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • L88 - Industrial Organization - - Industry Studies: Services - - - Government Policy
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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