The Path To Faster Payments Ubiquity Starts With You
Do you want a hand in shaping the future of the nation’s payments system? The U.S. Faster Payments Council (FPC) is a new membership organization established so Americans can safely and securely pay anyone, anywhere, at any time and with near-immediate funds availability.
FPC members use private-sector approaches to address issues that inhibit adoption of faster payments, and enable end users to reach each other in ways as seamless and transparent to them as mobile texting.
The FPC gives members an edge in navigating the evolving faster payments landscape:
- Focus on the larger goals of safety, security and adoption of all faster payments
- Opportunities to broaden their reach and leverage investments across a much broader base of transactions
- Safe forums for dialogue governed by strong antitrust guard rails
What Some Of Our Founders Are Saying…
For business end users, the FPC provides a forum to contribute our perspectives and ideas to help shape the future of faster payments.
Both Mastercard and the FPC value diverse perspectives. I encourage our customers and partners to join this unique forum and participate in shaping the future of faster payments.
Small institutions and end users have a voice on the FPC. All stakeholder segments work together to make fair, inclusive decisions that benefit the overall industry.
North American Banking Company
Making faster payments ubiquitous, safe and efficient will require the collaborative effort of all stakeholders; the FPC brings us all together.
Product and Strategy
The Clearing House
I get a lot of value dialoguing with a range of stakeholders, especially those outside the usual payment circles, such as consumer and business end users.
Early Warning Services
Visa is excited to join the Council to continue our efforts in delivering the fastest, most convenient and safest payment options to consumers and businesses everywhere.
Global Faster Payments Strategy
In representing the interests of community financial institutions, SHAZAM will work within the FPC to ensure they benefit from the FPC’s inclusive and collaborative approach to achieving ubiquity.
Bankers’ Bank’s strong support of community banking aligns with the FPC, bringing all stakeholders together to advance the efforts of modernizing the U.S. payment system.
The FPC is an inclusive stakeholder community that provides industry colleagues from all market segments with the opportunity to dialogue and promote adoption of faster payments.
United by a shared vision of faster payments ubiquity, diverse FPC members aim to achieve collaboratively what other countries can only do by mandate.
Open Payment Network
Small businesses and rural consumers rely on healthy community banks. The FPC is an inclusive channel for community banks to make their voices heard and have a say in their future.
The Bankers Bank
Jack Henry & Associates
NACHA – The Electronic Payments Association
Payment Industry Relations
Wells Fargo Bank, NA
Driven by Shared Goals
The FPC’s structure, operations and activities adhere to fundamental principles:
Through diverse, segment-level representation on the Board and opportunities to serve on committees and work groups, active members have a voice in the FPC’s direction and are informed by the perspectives of other members.
The FPC provides safeguards for information sharing and collaboration among members on issues of common interest.
Members choose whether to adopt FPC recommendations and are able to implement them consistent with their individual organizations’ needs.
The FPC can quickly stand up work groups to target mutual problems and respond to issues facing faster payments. When appropriate, it will work with existing organizations to complement industry initiatives.
The FPC has open, transparent and objective processes for internal deliberations and decision making.
Consensus decision making is a priority for FPC recommendations having a significant impact on any member; while not every decision may be unanimous, minority voices will have open, inclusive opportunities to be heard.
Journey To Faster Payments
The FPC is the culmination of a multi-year initiative that started with 320+ industry stakeholders coming together, with Federal Reserve support, as the Faster Payments Task Force. In its final report published in 2017, the task force directed the Governance Framework Formation Team (GFFT) to develop and implement a faster payments governance framework, inclusive of all stakeholders, to facilitate ubiquity of faster payments in the United States.
After considering diverse and substantial comments on a draft framework in the spring of 2018, the GFFT finalized what is now today’s Operating Vision for the U.S. Faster Payments Council. The majority of GFFT members have committed to being founding members of the FPC and are leading establishment activities for the new organization.
Strategic Groundwork for the FPC
Value of Membership
The FPC provides members with a unique opportunity to influence the future of faster payments through inclusive dialogue and collaborative problem-solving.
Join a forum for collaboration and problem solving focused on the roadmap to broad faster payments adoption and ubiquity. FPC forums are governed by strong antitrust guardrails that support innovation, inform system design, and enhance cross-solution risk mitigation.
Participation in committees and work groups is the primary avenue for influencing decisions affecting the direction of the FPC and its priorities. Membership is open to all members, subject to the need to ensure balance, inclusivity and effectiveness.
Represent your industry segment through an elected position on the Board of Directors to set strategic direction and ensure processes, activities and recommendations of the FPC are consistent with its fundamental principles.
Workgroups Are Where It’s At!
Are you interested in having a voice on issues that currently stand in the way of achieving faster payments ubiquity in the United States? The FPC is currently recruiting members for three workgroups:
SAFETY & SECURITY
Promote adoption of practices that enhance safety and security for service providers and users of faster payments, fostering a high-quality user experience for all.
EDUCATION & AWARENESS
Build an educational and awareness program to foster better understanding of faster payments and confidence among providers and users.
Promote service provider strategies, policies, practices and capabilities that provide end-users with transparency into what to expect when making faster payments.
Frequently Asked Questions (FAQs)
Get answers to common questions about the U.S. Faster Payments Council.
Compared to traditional retail payments, faster payments have a number of distinguishing characteristics including speed and continuous service availability. The Committee on Payments and Market Infrastructures of the Bank of International Settlements defines fast payments as “payments in which the transmission of the payment message and the availability of final funds to the payee occur in real time or near-real time, and on as near to a 24-hour and 7-day basis as possible.”
The Faster Payments Task Force believed that an industry-led framework for cross-solution collaboration and decision making is needed to support achievement of a faster, ubiquitous, broadly inclusive, safe, highly secure, and efficient payment system. Specifically, a body such as the U.S. Faster Payments Council could facilitate successful pursuit of the task force goal of ubiquitous receipt – where multiple payment service providers are capable of receiving faster payments and of making those funds available to their end-user customers in real time. A coordinated, industry-wide and inclusive body will be more effective in facilitating adoption, enhancing security, and increasing user awareness than if the parties were to act separately.
In today’s increasingly mobile, digital economy, Americans require a world-class payment system where they can safely and securely pay anyone, anywhere, at any time and with near-immediate funds availability.
The FPC focuses on private-sector approaches to solving problems and driving ubiquity of faster payments. This includes supporting providers’ and network operators’ efforts to enable end users to easily use an array of solutions and networks to reach each other in ways that are as seamless and transparent to them mobile texting. It also involves supporting broad adoption of faster payments. As an independent, solution-agnostic organization, the FPC is in a unique position to work with industry stakeholders and tackle challenges that may be more difficult to address through bilateral cooperation alone.
The FPC will become the “go-to” organization for encouraging faster payments and providing thought leadership as the market evolves because it:
- Focuses on the larger goals of driving safety, security and adoption of all faster payments, and advancing the future of faster payments;
- Enables FPC members to broaden their reach and leverage their investments across a much broader base of transactions; and
- Creates safe forums for dialogue governed by strong antitrust guard rails that support innovation, inform system design, and enhance cross-solution risk mitigation.
In carrying out its activities, the FPC will take a pragmatic approach, focusing on analyses that identify the most effective and broadly supported tool(s) to address a given issue. It will develop recommendations using the “lightest touch” approach to resolve an issue. Member organizations retain the discretion to implement the resulting recommendations in ways that are consistent with their unique needs and processes, including the choice not to implement any given recommendation.
According to the FPC Framework and operating documents, member organizations retain the discretion to implement FPC recommendations in ways that are consistent with their unique needs and processes, including the choice not to implement any given recommendation. The influence of the FPC may also extend to non-members by virtue of operator and service provider participation.
Members have the opportunity to influence the roadmap to faster payments ubiquity through inclusive, collaborative dialogue and problem solving, and will be informed by the perspectives of other members. All members, voting and non-voting, have the right to access work products, participate on committees and work groups, and adopt decisions and recommendations of the FPC according to their individual organizations’ needs and prerogatives (including the choice not to adopt). Voting members also have the right to vote on FPC recommendations, vote for Board members, and seek a seat on the Board.
The FPC focuses on private-sector approaches to solving problems and driving ubiquity. It is expected that a variety of approaches will be needed to achieve the seamless reach and transparency end users desire. For example, a technical approach at the rail level may make sense in certain cases, but in others, providers could opt to offer transparent overlays and connections to a variety of rails that will enable their customers to reach all other end users. The coordination and collaboration that the FPC can facilitate between multiple approaches is key to successfully meeting end-user expectations.
The FPC has a tiered membership fee structure that takes into account the size and type of the participating organization. Annual fees are based on organizational revenue as shown in the table below. Non-voting Associate Members pay $250 regardless of revenue. Annual dues correspond to the 12 month calendar year; dues will be prorated quarterly based on the month of membership acceptance as follows:
January 1 – March 31: Full Annual Dues
April 1 – June 30: 75%
July 1 – September 30: 50%
October 1 – December 31: 25%
|Annual Revenue||General Member|
|< $5 million||$500|
|$5 million – <$10 million||$1,500|
|$10 million – <$100 million||$3,000|
|$100 million – <$500 million||$6,000|
|$500 million – <$1 billion||$15,000|
|$1 billion – <$5 billion||$30,000|
|$5 billion – <$10 billion||$45,000|
|$10 billion – <$20 billion||$60,000|
|>= $20 billion||$90,000|
The FPC is open to all stakeholders in the U.S. payment system. Subject to FPC Board review, members self-select into the segment that best describes their organization’s primary role/interests as defined below:
Voting Member Segments
|Financial institutions||State or federally chartered banks, credit unions and brokerage firms or organizations that represent financial institutions that provide payment services to end users and clear and settle payments on their behalf.|
|Payment network operators||Entities that operate a payment network infrastructure or organizations that represent such payment networks.|
|Technology providers||Entities (other than payment network operators and financial institutions) that process payments, facilitate use of payment networks and/or provide payments-enabling services to any other unaffiliated stakeholders, including end users; this segment would also include organizations that represent technology providers.|
|Consumer organizations||Organizations that represent natural persons for the purpose of making and/or receiving payments for personal, family or household use and not for commercial/business use.|
|Business end users||Organizations that make or receive payments for commercial/business use or entities that represent those organizations.|
|Others||Representatives from industry organizations with an interest in payments issues, such as associations, rules and standards organizations and consultancies.|
Non-voting Member Segments
|Associate||Single-person businesses and individuals, such as academics, with a professional interest in payments issues who, if employed, are not in any way representing, reimbursed by, or funded by their employer organization.|
Single-person businesses and individuals with a professional interest in payments issues, such as those in academics, may join the FPC as non-voting associate members. To be eligible as an associate member, the applicant (if employed), must not in any way represent or be reimbursed by their employer organization.
The voting membership elects the FPC Board of Directors, which is accountable to the members for setting strategic direction and ensuring processes, activities and recommendations are consistent with the fundamental principles of the FPC. In addition, the Board is responsible for ensuring the views of segments with fewer members are heard during deliberations at the Board, committee and work group levels. The Board comprises up to 21 voting members representing the six membership segments. Segments include:
|Industry Segment||Number of voting Board seats|
|Payment network operators||3|
|Business end users||3|
Each voting segment is allocated 3 seats; however, seat allocations that are not filled are left vacant. In addition, 3 at-large seats will be allocated to the three voting segments with the largest number of members in a manner described in the bylaws, but no membership segment may have more than 4 seats. Each segment will vote to fill its own segment’s Board positions.
The FPC may also choose to invite public sector organizations, regulators, policymakers, or other entities that the Board determines will bring important view points and insight to participate in a non-voting liaison role. These liaisons may participate on committees and work groups and have access to work products, but may not serve on the Board or vote on general membership matters; they will also not pay dues.
Have an active voice in creating the future of faster payments by joining the U.S. Faster Payments Council! Membership is open to any organization with a stake in the U.S. payment system. FPC members enjoy safe forums for dialogue, participate on committees and work groups, and have access to FPC work products. Voting members may also run for a seat on the FPC Board of Directors.
- Voting membership is open to financial institutions, payment network operators, technology providers, consumer organizations, business end users and other organizations with an interest in payments.
- Non-voting (Associate) membership is open to single-person businesses and individuals with a professional interest in payments issues, who, if employed, are not in any way representing, reimbursed by, or funded by their employer.
- Liaisons: Public sector organizations, regulators, policy makers and others may also participate in the FPC as non-voting liaisons upon invitation from the FPC’s Board.
- The Bank of New York Mellon
- First Data
- Goldman Sachs Bank USA
- JPMorgan Chase Bank & Co.
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