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Rethinking the future of payments
Journal of Payments Strategy & Systems,
9
(2),
164-171
(2015)
Abstract
As more nations implement immediate payment systems, the industry has an opportunity to make payments not only faster, but safer and more useful. Tokenisation of payment credentials, credit-only transactions, imposition of robust access security, real-time anti-fraud/anti-money laundering/sanctions screening and network activity monitoring are ways to make any payment system safer. There is a continuum of choices that balance settlement risk with cost and complexity. Internet and mobile connectivity support rich, timely, flexible messaging. Combined, these factors provide an opportunity to build an unprecedented platform for payments innovation.
Keywords: payments improvement; immediate payments; safer payments; settlement; real-time messaging; payments innovation
The full article is available to subscribers to the journal.
Author's Biography
Steve Ledford is Senior Vice President of Product Development at The Clearing House, LLC, and is leading development of a Real-Time Payment System, which will be implemented in 2017. The Clearing House (www.theclearinghouse.org) is a banking association and payments company that is owned by the largest commercial banks and dates back to 1853. The Clearing House Payments Company, LLC, owns and operates the core payments system infrastructure in the USA and is currently working to modernise that infrastructure by building a new, ubiquitous, realtime payment system. The Payments Company is the only private-sector Automated Clearing House operator (ACH) and wire operator in the USA, clearing and settling nearly US$2 trillion in US dollar payments each day, representing half of all commercial ACH and wire volume. Its affiliate, The Clearing House Association, LLC, is a nonpartisan organisation that engages in research, analysis, advocacy and litigation focused on financial regulation that supports a safe, sound and competitive banking system.
