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PCI compliance and EMV migration require payments
The very point of sale stakeholders to put aside differences and protect our
industry from bad actors. In a similar way, building a
faster payments network will require competing banks
and third-party service providers to find common ground.

"Building a real-time payments network means redesigning
an entire ecosystem and multi-trillion-dollar market," said
Travis D. Dulaney, CEO and founder at PayFi. "It means
providing liquidity by transforming risk-based models to
funds movement models and moving from proprietary to
Faster payments: What's open source systems. 30 years ago, banks began outsourcing
services to companies like FIS and Jack Henry and their
slowing us down? core systems are all proprietary."

Building new rails in 2020
By Dale S. Laszig Peter Gordon, co-founder at Payment Relationship
Management, said, "Large banks understand that the
've been covering faster payments for The Green current payment system infrastructure is broken, like our
Sheet for a while now, getting insights from ISOs, roads and bridges in the United States. Creating new rails
analysts and third-party service providers on how that would allow banks to move money from one bank to
I to make interbank funds transfers faster and more another efficiently is driving the change."
efficient. I didn't fully appreciate the need for high-speed
communications until the night I tried to watch Netflix, Ever since The Clearing House's owner banks connected to
and my video stream kept buffering. Then it got personal. the Real-time Payments network, faster payments initiatives
have been in play, and numerous parties are making their
I called my Internet Service Provider and spoke to Beth, voices heard, Gordon noted. Community banks want TCH
who reset my modem, ran some speed tests and assessed and the Fed to be inclusive and serve their needs. Retailers
my technical issues. That's when I learned that video and retail trade groups like the National Retail Federation
streaming requires a higher processing speed. My 70 mbps want the Fed to create a real-time payments network, so
subscriber level was more than adequate for email, social they can get paid faster. These projects will take years to
media and posting articles on the web, but not enough for develop, he added.
movie watching, Beth explained. My subsequent upgrade
to 250 mbps has enhanced my smart TV viewing and Gordon had visited the Federal Reserve the day before our
Internet browsing. interview and predicted that 2019 will be a defining year
for connectivity. THC will continue to build its network
The experience got me thinking about secure, high-speed and supporting applications will provide more visibility
connections in other areas of my life, like healthcare, bill into accounts and billing statements. And the real magic
payments and shopping. Advanced technologies are will happen around 2020, when banks use data provided
transforming our lives and businesses, creating a virtual by the new rails, he stated.
world where we can watch movies, play games and buy
things. In a few years, we've gone from talking about Transacting in the virtual world
connected commerce to talking about faster commerce. For "The Fed did a great job in assembling the Faster Payments
many of us in the payments value chain, it's not happening Task Force," Dulaney said. "Consumers and large and small
fast enough. companies are collaborating by choice, not by government

It's complicated mandate, to connect multiple endpoints and build a better
banking network."
What's slowing down faster payments? It's certainly
not technology: apps like Zelle and Venmo have been Delaney went on to note that whenever we transact online,
facilitating instant peer-to-peer transactions for years. It's we enter a virtual reality made of multilayered, integrated
not government: the U.S. Federal Reserve Bank created the technologies. While this smarter, faster virtual world
Faster Payments Task Force in 2015 and recently formed the remains a work in progress, I'll plan to keep Beth on speed
Faster Payments Committee to "modernize our country's dial.
payments system and allow everyone – providers,
consumers, businesses, and more – to benefit from faster Dale S. Laszig, senior staff writer at The Green Sheet and managing
payments."
director at DSL Direct LLC, is a payments industry journalist and content
Getting different players and competitors to work together provider. She can be reached at dale@dsldirectllc.com and on Twitter at
is not easy, but major initiatives can be mobilizing. @DSLdirect.
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